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  • Trading volume remains thin on Monday amid Easter holiday.
  • US Dollar Index erases early loses, rebound above 99.50.
  • Coming up on Tuesday: Trade Balance data from China.

The NZD/USD pair fluctuates in a very tight range on Monday amid thin trading conditions due to the Easter Monday. As of writing, the pair was down 0.16% on a daily basis at 0.6065. 

DXY finds support ahead of 99

The selling pressure surrounding the greenback throughout the previous week allowed the pair to post its highest weekly close since early March at 0.6078. The Federal Reserve’s new actions to provide up to $2.3 trillion in loans to support the economy in the face of the coronavirus outbreak boosted the market sentiment and caused the US Dollar Index (DXY) to end the week on a weak note.

However, after slumping toward the 99 handle during the early hours of the European session on Monday, the DXY staged a technical rebound and erased its losses to force the pair to remain in the negative territory. As of writing, the DXY was up 0.05% on the day at 99.54.

The pair is likely to remain quiet in the remainder of the day. On Tuesday, Trade Balance data from China will be looked upon for fresh impetus. 

Technical levels to watch for