NZD/USD goes into consolidation below 0.6700, looks to post highest daily close of 2020

• NZD/USD builds on last week’s gains on Monday.
• Broad-based USD weakness helps the pair push higher. 
• Statistics New Zealand will release Total Filled Jobs data on Tuesday.

The NZD/USD pair gathered bullish momentum after closing the previous week in the positive territory and touched its best level since early January at 0.6693. As of writing, the pair was up 0.7% on the day at 0.6682 and was on track to post its highest daily close since the last day of 2019.

DXY slumps ahead of FOMC meeting, key US data

The unabated selling pressure surrounding the greenback remains as the main market theme on Monday. With the US data pointing out to a sluggish recovery in the US economy, investors seem to be pricing further expansionary adjustments in the Fed’s monetary policy. At the moment, the US Dollar Index (DXY) is down 0.76% on a daily basis at 93.63.

Earlier in the day, the US Census Bureau reported that Durable Goods Orders in July rose by 7.3% in July following June’s increase of 15.1%. Additionally, Dallas Fed’s Manufacturing Index improved slightly to -3 in July but showed an ongoing contraction in Texas’manufacturing activity. 

In the early trading hours of the Asian session on Tuesday, Statistics New Zealand will publish the Total Filled Jobs data for June. More importantly, the FOMC will release its policy statement on Wednesday before the US Bureau of Economic Analysis announces the second-quarter GDP figures on Thursday.

Technical levels to watch for