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  • NZD/USD came under renewed selling pressure in American session.
  • US Dollar Index rose to its highest level since August 12 at 93.48.
  • Wall Street’s main indexes suffer heavy losses on Tuesday.

The NZD/USD pair continued to push lower in the second half of the day on Tuesday and touched its lowest level since August 28th at 0.6630. Although the pair recovered modestly, it’s still down 0.75% on the day at 0.6640.

USD gathers strength on flight to safety

After closing the first day of the week modestly higher, the US Dollar Index (DXY) preserved its bullish momentum on Tuesday as safe-haven flows provided a boost to the USD.

With Wall Street’s main indexes opening deep in the negative territory, the DXY rose to its highest level in more than three weeks at 93.48. At the moment, the index is up 0.26% on the day at 93.30. In the absence of significant macroeconomic data releases, heightened US-China geopolitical tensions and the lack of progress on the next coronavirus aid bill in the US forced investors to seek refuge.

The only data from the US showed on Tuesday that the IBD/TIPP Economic Optimism Index dropped from 46.8 to 45 in September but was largely ignored by the market participants.

In the early trading hours of the Asian session on Wednesday, ANZ Business Confidence Index, ANZ Activity Outlook Index and Manufacturing Sales data for the second quarter will be released from New Zealand.

Technical levels to watch for