- NZD/USD clings to daily gains above 0.7200 on Tuesday.
- US Dollar Index stays in the negative territory following Monday’s recovery.
- Eyes on US ISM Manufacturing PMI data and Georgia election.
The NZD/USD pair rose above 0.7200 on Monday but reversed its direction in the second half of the day as the souring market mood helped the greenback outperform its rivals. On Tuesday, however, the pair didn’t have a tough time gathering bullish momentum and was last seen trading at 0.7213, where it was up 0.55% on a daily basis.
Focus shifts to US data, Georgia election
The sharp decline witnessed in the major equity indexes in the US provided a boost to the US Dollar Index (DXY) and allowed it to close the day little changed near 89.90. Resurfacing fears over nationwide lockdowns hurting the global economic recovery and the upcoming election in Georgia, which will determine if Democrats will be able to take control of the Senate, weighed on the sentiment on Monday.
Nevertheless, the DXY failed to preserve its bullish momentum and the S&P 500 Futures are trading in the positive territory, suggesting that risk flows are returning to markets. At the moment, the DXY is down 0.23% on the day at 89.65.
Later in the day, the ISM Manufacturing PMI for December will be featured in the US economic docket. Additionally, several FOMC policymakers will be delivering speeches.
Additionally, investors will also keep a close eye on Georgia election. If early exit polls point out to a Senate with Democratic majority, the risk-positive environment could continue to hurt the USD.
Technical levels to watch for
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