- NZD/USD trades in the positive territory on Tuesday.
- US Dollar Index continues to push lower toward 90.00.
- NY Empire State Manufacturing Index and NZ GDT Price Index coming up next.
The NZD/USD pair posted small gains on Monday and preserved its bullish momentum during the Asian trading hours on Tuesday. After advancing to its best level in more than a month at 0.7269, the pair started to consolidate its gains and was last seen rising 0.36% on the day at 0.7252.
Earlier in the day, the risk-positive market environment, as reflected by strong gains seen in major Asian equity indexes provided a boost to the NZD. Furthermore, the broad-based selling pressure surrounding the greenback remained intact during the first half of the day and helped NZD/USD push higher.
The US Dollar Index, which tracks the USD’s performance against a basket of six major currencies, is currently down 0.33% at 90.18.
Later in the session, the Federal Reserve Bank of New York’s Empire State Manufacturing Index will be looked upon for fresh impetus. Additionally, the bi-weekly GDT Price Index data from New Zealand will be watched closely by the market participants.
NZD/USD technical outlook
Credit Suisse analysts think that the next resistance area for NZD/USD aligns at 0.7281/86 ahead of 0.7300.
“Beyond here can see a fresh test of the current year high at 0.7306/15, where we would expect to see a first attempt to cap, but with an eventual break finally reasserting the broader uptrend,” analysts added. “Support is seen initially at 0.7225, then 0.7215/00, beneath which would ease the immediate upside bias and see a move back to 0.7176/72. Removal of here would expose the support at 0.7159.”
Additional levels to watch for
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