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  • US Dollar Index stays above 97.70 on Tuesday.
  • No data releases from New Zealand this week.
  • Mid-tier data from US unlikely to trigger any market reaction.

The NZD/USD pair posted modest daily gains on Monday despite the USD strength but struggled to stretch higher on Tuesday as thin trading conditions force the market activity to remain subdued. As of writing, the pair was virtually unchanged on the day at 0.6334.

Lull week ahead

Hopes of the United States and China moving towards the completion of the trade deal provided a boost to trade-sensitive AUD and NZD at the start of the week. Although the US Dollar Index climbed higher in the second half of the day, the pair didn’t have a difficult time clinging to its gains in the absence of significant fundamental drivers.

Later in the session, the Federal Reserve Bank of Richmon’s Manufacturing Survey will be the only data release from the US and markets are likely to pay little to no mind to this data ahead of the Christmas holiday.

There won’t be any macroeconomic data releases from New Zealand in the remainder of the week and the USD’s performance is likely to impact the pair’s movements.

In the meantime, markets are likely to continue to react to any fresh developments surrounding the US-China trade conflict in the near-term.

Technical levels to watch for