- NZD/USD is trading in a tight range following Tuesday’s decline.
- US Dollar Index retreats below 90.00 during the European session.
- Mixed data releases from New Zealand failed to trigger a market reaction.
The NZD/USD pair closed in the negative territory on Tuesday and seems to have gone into a consolidation phase on Wednesday. As of writing, the pair was up 0.08% on a daily basis at 0.7204.
Choppy action continues in financial markets
Earlier in the day, the data from New Zealand showed that Manufacturing Sales in the first quarter rose by 0.4%. Moreover, the ANZ Business Confidence Index declined to -0.4 in June from 1.8 but the Activity Outlook Index improved to 29.1% from 27.1% during the same period. Nevertheless, these mixed reading failed to have a noticeable impact on the NZD’s market valuation.
On the other hand, the US Dollar Index (DXY) continues to fluctuate in its weekly range in the absence of high-tier data releases and fundamental developments. Currently, the DXY is down 0.16% on the day at 89.98, helping NZD/USD cling to its modest daily gains for the time being.
Later in the day, April Wholesale Inventories will be the only macroeconomic data featured in the US economic docket. More importantly, investors will keep a close eye on the 10-year US note auction. Weak demand is likely to help the benchmark 10-year US Treasury bond yield gain traction and provide a boost to the USD.
Technical levels to watch for
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