- NZD/USD stays relatively calm at the start of the week.
- US Dollar Index edges lower as markets turn risk-positive.
- RBNZ will announce monetary policy decisions on Wednesday.
The NZD/USD pair registered small losses last week and started the new week in a calm manner in the absence of significant fundamental drivers. As of writing, the pair was up 0.1% on a daily basis at 0.7177.
DXY stays below 90.00
The modest USD weakness witnessed during the European trading hours seems to be allowing NZD/USD to stay afloat in the positive territory. Following Friday’s rebound that was fueled by upbeat US PMI readings, the US Dollar Index is edging lower and was last seen losing 0.13% on the day at 89.90.
The risk-positive market environment is making it difficult for the USD to find demand. Reflecting the upbeat market mood, the S&P 500 Futures are rising 0.42%. If US stocks push higher after the opening bell, the greenback is likely to remain on the back foot in the second half of the day.
The Federal Reserve Bank of Chicago’s National Activity Index for April will be looked upon for fresh impetus later in the day. Federal Reserve Governor Lael Brainard and Cleveland Federal Reserve President Loretta Mester will be delivering speeches as well.
On Wednesday, the Reserve Bank of New Zealand will announce its policy decisions. Earlier in the day, the data from New Zealand revealed that Retail Sales in the first quarter expanded by 2.5%. Although this reading beat the market expectation for a decrease of 4.4% by a wide margin, it failed to trigger a meaningful market reaction.
Technical levels to watch for
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