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  • NZD/USD is struggling to find direction on Tuesday.
  • US Dollar Index stays in narrow band below 91.00.
  • Focus shifts to mid-tier data releases from the US.

The NZD/USD pair staged a modest rebound after declining toward 0.7000 on Monday and closed the day flat. In the absence of significant fundamental drivers, the pair continues to have a difficult time making a decisive move in either direction and was last seen losing 0.11% on the day at 0.7035.

Eyes on mid-tier US data and Wall Street

The lack of progress in the UK-EU trade talks caused investors to adopt a cautious stance and helped the greenback show some resilience against its rivals at the start of the week. The US Dollar Index is currently posting small daily gains at 90.87, not allowing NZD/USD to recover its losses.

In the second half of the day, the Nonfarm Productivity and Unit Labor Costs data for the third quarter from the US will be looked upon for fresh catalysts.

Earlier in the day, the data from the NFIB showed that the Business Optimism Index in the US declined to 101.4 in November from 104 in October but failed to trigger a market reaction.

In the meantime, the S&P 500 Futures are down 0.45% on the day, suggesting that the greenback could continue to gather strength during the American session if Wall Street’s main indexes suffer heavy losses.

In the early trading hours of the Asian, investors will keep a close eye on the Consumer Price Index data from China.

Technical levels to watch for