- New Zealand’s GDT price index declines 1.3% on Tuesday.
- New York Fed reports strong activity growth in the service sector.
- Improved sentiment helps pair stay in the positive territory.
The NZD/USD pair recorded modest losses in the NA session but continues to stay in the positive territory below the 0.66 handle. At the moment, the index is up 0.2% on the day at 0.6590.
Although the disappointing outcome from the bi-weekly Global Daily Trade (GDT) auction in New Zealand weighed on the kiwi, the pair didn’t have a difficult time as the risk-sensitive currency took advantage of the upbeat risk sentiment as reflected by the short-term T-bond yields and equity indexes in the U.S. The GDT price index, which fell 0.7% in the previous auction, declined 1.3% today.
According to the only data from the U.S., the Federal Reserve Bank of New York’s Business Leaders Survey showed that the service sector continued to expand at a strong pace in September. “The survey’s headline business activity index climbed eight points to 22.5, its highest level in more than ten years,” the publication read. The US Dollar Index, which fluctuated in a relatively tight range on Tuesday, was last seen flat at 94.50.
In the early trading hours of the Asian session, Westpac’s consumer confidence survey and current account figures from New Zealand will be looked upon for fresh impetus.
Technical levels to consider
The first technical resistance could be seen at 0.6615 (Sep. 6 high) ahead of 0.6660 (50-DMA) and 0.6725 (Aug. 28 high). On the downside, supports align at 0.6540 (Sep. 14 low), 0.6500 (psychological level/Sep. 11 low) and 0.6460 (Feb. 2, 2016, low).
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