- The NZD/USD pair struggles to find direction on Monday.
- US Dollar Index stays above 96.
The NZD/USD pair started the day on a negative note and failed to extend its recovery gains during the Asian session. After edging lower toward the 0.66 handle, the pair went into a consolidation phase and has been moving sideways in a 20 pip range since then. At the moment, the pair is down 0.2%, or 13 pips, on the day at 0.6623.
Meanwhile, the US Dollar Index rose toward the 96.40 mark during the first half of the day but lost its traction in the early NA session. A sharp fall witnessed in the U.S. T-bond yields seems to be the primary driver of the greenback’s market valuation on Monday amid a lack of macroeconomic data releases. As of writing the DXY was down 0.02% on the day at 96.10 while the 10-year T-bond yield was losing 1.44% at 2.833%.
In the early Asian session, the Reserve Bank of New Zealand will publish the annual credit card spending data, which showed a 5.7% increase in June, for July. The economic docket in the U.S. won’t be offering any significant data releases on Tuesday either.
Technical outlook
Despite the recovery witnessed on Thursday and Friday, the RSI indicator on the daily chart stays below the 50 mark, suggesting that sellers are likely to remain in the control of the pair’s price action. On the downside, supports align at 0.6610 (daily low), 0.6545 (Aug. 15 low) and 0.6500 (psychological level). Resistances could be seen at 0.6640 daily high, 0.6690 (Aug. 9 high) and 0.6745 (50-DMA).
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