- AUD/USD selloff weighs on the pair on Tuesday.
- US Dollar Index clings to modest gains a little above 98.
- Coming up: Speeches by FOMC members Bostic and Rosengren and retail sales data from NZ.
The NZD/USD pair came with a touching distance of the 0.65 mark today and renewed its lowest level since October 2018 as the pair came under a renewed bearish pressure during the Asian trading hours. With the market action turning subdued in the last hours, the pair has started to move sideways in the lower half of its daily trading range and was last losing 0.35% on a daily basis at 0.6510.
The dovish shift in the Reserve Bank of Australia’s monetary policy outlook as revealed by Governor Lowe’s remarks and the bank’s minutes of its May meeting caused the AUD to suffer heavy losses against its major rivals and weighed on the strongly-correlated kiwi. Meanwhile, the data from New Zealand showed that credit card spending grew by 4.5% annually in April to fall short of the market expectation of 5.9% and put additional weight on the currency’s shoulders.
On the other hand, with major European currencies and antipodeans struggling to find demand on Tuesday, the greenback gathered strength and the US Dollar Index rose above the 98 handle to touch its highest level of May at 98.13, keeping the bearish pressure on the pair intact.
Later in the session, Boston Fed President Rosengren and Chicago Fed President Evans will be delivering speeches. In the early trading hours of the Asian session on Wednesday, retail sales data from New Zealand will be looked upon for fresh impetus.
Technical levels to watch for
With a daily close below 0.6500 (psychological level/daily low), the pair could extend its slide to 0.6465 (Oct. 26, 2018, low) and 0.6425 (Oct. 8, 2018, low). On the upside, resistances are located at 0.6540 (daily high), 0.6580 (May 16 high) and 0.6615 (May 10 high).
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