NZD/USD consolidates daily losses, looks to close below 0.7200

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  • NZD/USD is struggling to find direction on Tuesday.
  • US Dollar Index stays in the positive territory during the American session.
  • GDT Price Index in New Zealand declined by 3.8%.

The NZD/USD pair dropped to a daily low of 0.7168 during the European trading hours but managed to erase its daily losses in the early American session. However, the pair failed to gather bullish momentum and was last seen losing 0.15% on the day at 0.7190.

DXY inches higher on the back of recovering T-bond yields

Earlier in the day, the data published by the US Census Bureau showed that Retail Sales in February declined by 3%. This reading missed the market expectation for a decrease of 0.5% but was largely ignored by market participants. Other data from the US revealed that Industrial Production in February contracted by 2.2% due to severe weather conditions.

The US Dollar Index, which spent the majority of the day near 91.80, was last seen rising 0.11% on the day at 91.93. A recovery witnessed in the 10-year US Treasury bond yield in the last hour seems to be helping the greenback find demand. 

On the other hand, the bi-weekly Global Dairy Trade (GDT) auction yielded a 3.8% decline in the GDT price index, compared to analysts’ estimate for an increase of 9.5%.

On Wednesday, the REINZ House Price Index for February and fourth-quarter Current Account data will be released from New Zealand but they are not expected to trigger a significant market reaction.

Technical levels to watch for

 

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