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  • US Dollar Index slumps below 96.80 ahead of mid-tier data.
  • China’s retail sales are expected to rise by 8% in 2019.
  • Coming up on Tuesday: Manufacturing and Non-Manufacturing PMI data from China.

The NZD/USD pair gained more than 100 pips last week and stretched higher on Monday to touch its strongest level in more than five months at 0.6720. As of writing, the pair was up 0.2% on the day at 0.6712.

Earlier in the day, retail sales in China are expected to rise by 8% in 2019 following the 9% growth recorded in 2018, China’s official news agency, Xinhua, reported, citing a commerce ministry official to help the NZD continue to gather strength against the greenback.  

Ongoing USD weakness allow pair to stay in green

On the other hand, the selling pressure surrounding the USD remains intact on Monday as markets are getting ready to wrap up the year. The US Dollar Index, which tracks the USD’s value against a basket of six major currencies, erased 0.7% last week and was last down 0.2% on the day at 98.62.

Later in the session, Pending Home Sales and Dallas Fed Manufacturing Index data will be released from the US. In the early trading hours of the Asian session on Tuesday, NBS Manufacturing PMI and Non-Manufacturing PMI reading from China will be watched closely for fresh signs of recovery in the world’s second-largest economy.

Technical levels to watch for