- NZD/USD starts recovering Monday’s losses.
- US Dollar Index edges down to 94 handle ahead of US data.
- Coming up: S&P Case-Shiller House Price Index and Richmond Fed Manufacturing Index.
The NZD/USD pair stayed relatively quiet below mid-0.66s during the first half of the day and gathered traction in the last couple of hours to advance to a daily high of 0.6660. As of writing, the pair was trading a couple of pips below that level and adding 0.18% on the day.
Ahead of tomorrow’s critical FOMC meeting, the US Dollar Index is having a difficult time making a decisive move in either direction. Following yesterday’s sharp drop to 93.83, the DXY finished the day flat above the 94 handle and is moving sideways in the negative territory on Tuesday to suggest that investors are refraining from making large bets. Later in the day, the S&P Case-Shiller House Price Index and the Richmond Fed Manufacturing Index will be looked upon for fresh impetus.
In the meantime, the data released by the Federal Reserve Bank of Philadelphia showed that the service sector lost momentum with the non-manufacturing index easing to 37.4 from 41.7 in September. At the moment, the DXY is at 94.10, losing 0.15% on the day.
In the early trading hours of the Asian session, Statistics New Zealand will release the trade balance report, which is expected to show a $4.62 billion trade surplus on a yearly basis in August.
Technical levels to consider
On the downside, supports could be seen at 0.6640 (50-DMA), 0.6570 (Sep. 19 low) and 0.6500 (psychological level). On the other hand, resistances align at 0.6700 (Sep. 21 high), 0.6760 (Aug. 8 low) and 0.6810 (Aug. 1 high).
Share
