- NZD/USD touches new weekly high of 0.6572 on Tuesday.
- US Dollar Index stays in green below 97.
- Coming up: ANZ’s Business Confidence and Activity Outlook indexes.
After closing the previous day flat, the NZD/USD pair took advantage of the improved market sentiment on Tuesday and rose to its highest level since October 22 at 0.6572. With the markets quieting down in the US afternoon, the pair started to consolidate its daily gains and was last seen trading at 0.6560, where it was up 0.6% on a daily basis.
The upbeat tone surrounding risk-sensitive currencies helped the kiwi gather strength against its rivals on Monday. Reflecting the risk-on mood, Wall Street started the day higher and extended its march north in the first half of the NA session to allow the kiwi to preserve its momentum.
On the other hand, after, once again, failing to break above 97, the US Dollar Index retreated to 96.70 area and found support there and reversed its direction to cap the pair’s upside. As of writing, the DXY was up 0.22% on the day at 96.90. The data published by the Conference Board earlier today showed that consumer sentiment continued to improve in the October in the U.S. “Consumer Confidence Index increased again in October, following a modest improvement in September. The Index now stands at 137.9, up from 135.3 in September,” the CB announced.
In the early trading hours of the Asian session, the National Bank of New Zealand will publish its Business Confidence and Activity Outlook indexes.
Technical levels to consider
The initial resistance for the pair aligns at 0.6570 (daily high) ahead of 0.6610 (Oct. 21 high) and 0.6640 (100-DMA). On the downside, supports could be seen at 0.6520 (daily low), 0.6465 (Oct. 26 low) and 0.6420 (Oct. 8 low).
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