NZD/USD climbs to multi-week highs above 0.7060 amid broad USD weakness
- NZD/USD gains traction after moving sideways on Monday.
- US Dollar Index remains on the back foot, falls below 92.50.
- Eyes on mid-tier macroeconomic data releases from US.
After posting strong weekly gains, the NZD/USD pair started the new week in a calm manner and fluctuated in a tight range near 0.700 throughout the day. With the greenback coming under renewed bearish pressure on Tuesday, the pair regained its bullish momentum and was last seen rising 0.92% on the day at 0.7063.
DXY edges lower ahead of US data
Although the macroeconomic data releases from New Zealand showed a deterioration in business sentiment, NZD/USD didn't have a difficult time pushing higher. The ANZ Business Confidence slumped to -14.2 in August from -3.8 in July and the ANZ Activity Outlook Index declined to 19.2% from 26.3%.
On the other hand, the US Dollar Index, which fell sharply on Friday after FOMC Chairman Jerome Powell refrained from delivering a tapering timeline, is currently losing 0.24% at 92.47.
Later in the session, June Housing Price, the Chicago Purchasing Managers Index and the Conference Board's Consumer Confidence Index will be featured in the US economic docket.
Meanwhile, Wall Street's main indexes remain on track to open modestly higher, suggesting that the USD is likely to have a difficult time finding demand if risk flows start to dominate the financial markets in the second half of the day.
Technical levels to watch for