- NZD/USD struggles to preserve its recovery momentum on Monday.
- US Dollar Index reclaims 91.00 after earlier decline.
- Investors await February Manufacturing PMI data from US.
The NZD/USD pair suffered heavy losses in the second half of the previous week and lost nearly 200 pips in a two-day span. Although the pair edged higher toward 0.7300 at the start of the new week, it seems to be struggling to preserve its momentum. As of writing, NZD/USD was clinging to small daily gains at 0.7236.
The PMI figures from China over the weekend showed that the economic activity in the manufacturing sector grew at a softer pace than expected in February. Despite the disappointing data, the risk-on market environment helped the kiwi gather strength during the Asian trading hours.
Eyes on US PMI data
Currently, major European equity indexes and S&P 500 Futures are rising more than 1% but the renewed USD strength is not allowing NZD/USD to continue to push higher.
Supported by a more-than-1% increase in the 10-year US Treasury bond yield, the US Dollar Index (DXY) is clinging to modest daily gains above 91.00. Later in the session, the IHS Markit and the ISM will be releasing the February Manufacturing PMI reports.
Additionally, New York Federal Reserve President John Williams’ and Federal Reserve Governor Lael Brainard’s speeches will be looked upon for fresh impetus.
There won’t be any macroeconomic data releases from New Zealand on Tuesday and the USD’s market valuation is likely to continue to impact NZD/USD’s movements in the near-term.
Technical levels to watch for
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