- NZD/USD is trading in a tight range above 0.7200 on Monday.
- US Dollar Index consolidates last week’s losses below 90.50.
- US markets are closed due to Presidents Day holiday.
The NZD/USD pair started the new week on a firm footing and rose to 0.7250 in the early trading hours of the European session. However, the pair struggled to preserve its bullish momentum and erased its daily gains. As of writing, the pair was virtually unchanged on the day at 0.7224.
DXY moves sideways in 90.30-90.40 range
In the absence of significant fundamental drivers, the USD’s market valuation and markets’ risk perception continue to impact NZD/USD’s movements.
The strong gains witnessed in major European equity indexes reflect a risk-positive market environment, which helps the kiwi stay resilient against the greenback on Monday.
On the other hand, the US Dollar Index (DXY) is trading in a tight range below 90.50, allowing NZD/USD to limit its losses. The US markets will be closed due to the Presidents Day holiday and the trading action is likely to remain subdued. On Tuesday, Visitor Arrivals data will be released from New Zealand but it’s not expected to receive a meaningful market reaction.
The next key macroeconomic data from the US will be Wednesday’s Retail Sales figures. Additionally, the FOMC will publish the February Meeting Minutes later in the day.
Technical levels to watch for
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