- USD recovery picks up steam on Tuesday.
- Core PPI in the U.S. comes in above 2% in May.
- Coming up: IBD/TIPP Economic Optimism Index.
The NZD/USD pair came under a renewed pressure in the last hour and extended its slide to its lowest level since June 3 at 0.6568. As of writing, the pair was trading at 0.6573, losing 0.53% on a daily basis.
Earlier in the day, the data from New Zealand showed that manufacturing sales in the first quarter of the year expanded by 2% to match analysts’ estimates and was largely ignored by the market participants to let the USD’s market valuation continue to drive the pair’s price action.
After falling sharply in the second half of the previous week, the US Dollar Index posted modest recovery gains on Monday and gained further traction on Tuesday boosted by the decisive rebound witnessed in the US Treasury bond yields. Furthermore, the U.S. Bureau of Labor Statistics today reported that the core Producer Price Index (PPI), which excludes volatile food and energy prices, in May was 2.3% on a yearly basis and the NFIB Business Optimism Index improved to 105 from 103.5 in April to provide additional support to the greenback.
Later in the session, IBD/TIPP Economic Optimism will be released from the U.S. In the early trading hours of the Asian session, visitor arrivals and electronic card retail sales from New Zealand will be looked upon for fresh impetus.
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