NZD/USD extends decline to fresh daily low below 0.7200
- NZD/USD continues to push lower in American session.
- US Dollar Index continues to float above 90.00.
- Focus shifts to mid-tier data releases from New Zealand.
The NZD/USD pair came under renewed bearish pressure in the early trading hours of the American session and touched a daily low of 0.7188. As of writing, the pair was down 0.38% on the day at 0.7200.
USD preserves its strength on Tuesday
In the absence of significant macroeconomic data releases, the USD's market valuation continues to impact NZD/USD's movements. Despite the 2% decline seen in the 10-year US Treasury bond yield, the US Dollar Index (DXY) stays in the positive territory above 90.00 on Tuesday. The uninspiring performance of Wall Street's main indexes seems to be allowing the greenback to stay resilient against its major rivals.
Earlier in the day, the US Census Bureau reported that the goods and services deficit of the US declined by $6.1 billion to $68.9 billion in April, compared to analysts' estimate for a deficit of $69 billion. Nevertheless, this report had little to no effect on the DXY.
On Wednesday, first-quarter Manufacturing Sales, ANZ Business Confidence and ANZ Activity Outlook data from New Zealand will be looked upon for fresh impetus.
On the other hand, the next significant data release from the US will be Thursday's Consumer Price Index (CPI), which is expected to rise to 4.7% on a yearly basis in May from 4.2% in April.
Technical levels to watch for