NZD/USD trades in tight range around mid-0.6600s

• NZD/USD is fluctuating in a narrow band on Monday.
• US Dollar Index stays in the negative territory above 93.50.
• IHS Markit and the ISM will release US Services PMI data.

The NZD/USD pair is having a difficult time making a decisive move in either direction on Monday. As of writing, the pair was posting small daily gains at 0.6643.

Risk flows help NZD gather strength

At the start of the week, the market seems to have turned relatively upbeat amid reports suggesting that US President Donald Trump could leave the hospital as early as Monday. Reflecting the positive shift in sentiment, the S&P 500 futures are up 0.57% on a daily basis and major European equity indexes are gaining between 0.5% and 0.7%.

Meanwhile, the US Dollar Index (DXY), which closed the previous week in the negative territory, is edging lower on Monday and allowing NZD/USD to cling to its daily gains. Ahead of the IHS Markit’s and the ISM’s Services PMI reports, the DXY is down 0.17% on the day at 93.65.

Meanwhile, investors will keep a close eye on fresh developments surrounding President Trump’s condition. A strong dally in US stocks could help NZD/USD push higher in the second half of the day.

In the early Asian session on Tuesday, the NZIER Business Confidence data for the third quarter will be released from New Zealand.

Technical levels to watch for