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  • US Dollar Index drops below 99 on Tuesday.
  • Wall Street’s main indexes rise sharply to reflect an upbeat market mood.
  • Coming up: Food Price Index and REINZ House Price Index from New Zealand.

The NZD/USD pair advanced to its highest level since mid-March at 0.6131 during the Asian trading hours on Tuesday but failed to preserve its bullish momentum. As of writing, the pair was trading at 0.6090, adding 0.08% on a daily basis.

Upbeat Chinese data lifts kiwi

Earlier in the day, the data published by China’s Customs administration revealed that the trade surplus expanded to $19.9 billion in March to surpass the market expectation of $18 billion. Furthermore, China’s exports on a yearly basis contracted by 6.6% in March to beat analysts’ estimate for a decline of 15% by a wide margin.

Although these readings provided a boost to the China-proxy NZD during the first half of the day, the pair has gone into a consolidation phase and seems to be having a tough time finding direction.
Meanwhile, the upbeat market mood as reflected by a decisive rebound in Wall Street’s main indexes weighs on the greenback on Tuesday. At the moment, the US Dollar Index is down 0.5% on the day at 98.98 to help the pair stay in the upper half of its trading range. 

On Wednesday, the Food Price Index and the REINZ House Price Index data from New Zealand will be looked upon for fresh impetus. Later in the day, the US economic docket will feature Retail Sales and Industrial Production data.

Technical levels to watch for