NZD/USD consolidates daily gains above 0.7200
- NZD/USD started the new week on a firm footing.
- US Dollar Index fluctuates in a tight range above 90.00.
- Wall Street's main indexes look to open in the positive territory.
The NZD/USD pair gained traction during the Asian trading hours on Monday and advanced to a daily top of 0.7218 before going into a consolidation phase. As of writing, the pair was up 0.42% on the day at 0.7214.
DXY pares early losses ahead of mid-tier data
The broad-based selling pressure surrounding the greenback at the start of the week fueled the pair's climb. However, a negative shift witnessed in market sentiment after the IFO data from Germany showed a deterioration in business sentiment helped the greenback find demand and limited NZD/USD's upside.
Ahead of the Chicago Fed National Activity Index and the Dallas Fed Manufacturing Business Index data from the US, the US Dollar Index (DXY) is posting small daily gains at 90.26.
In the meantime, the S&P 500 Futures are up 0.3% on the day, suggesting that risk flows could retake control of financial markets in the second half of the day and hurt the safe-haven USD.
On Tuesday, the Reserve Bank of New Zealand (RBNZ) will release the Credit Card Spending data for December. The Business NZ Performance of Services Index (PSI) will be looked upon for fresh impetus as well.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
