NZD / USD retreats below daily highs near 0.6960 on dismal economic data

  • The NZD / USD trades higher on Tuesday in the first Asian trading session.
  • The US dollar index slips below 93.50, retreating from annual highs.
  • Risk aversion limited gains for Kiwi.

The NZD / USD extends the gains of the previous session on Tuesday into the Asian session. The selling pressure on the US dollar is pushing the pair higher. At the time of writing, the NZD / USD is trading at 0.6960, down 0.02% for the day,

The US Dollar Index (DXY), which measures the performance of the greenback against its six major rivals, fell to nearly 93.80 with losses of 0.24% despite US benchmark 10-year yields higher. The US Treasury is trading at 1.48%, after hitting 1.56% its highest since June the previous week. The greenback failed to capitalize on optimistic economic data, as new orders for US manufactured goods rose 1.2% in August, beating market expectations by 1%. Meanwhile, US President Joe Biden has said he does not guarantee the government will not exceed its $ 28.4 trillion debt limit unless Republicans join Democrats in voting for the to augment.

On the other hand, Kiwi has lost momentum due to a reduced risk appetite among investors following renewed COVID-19 restrictions and dismal economic data. According to the latest NZIER Quarterly Business Opinion Survey (QSBO), business confidence drops to -11% from + 7% in the third quarter, while capacity utilization stands at 96.1% against 94.9% in the second quarter.

On top of that, New Zealand Prime Minister Jacinda Arden is expected to decide whether Auckland will exit Alert Level 3, after 29 new infections were reported on Monday. It should be noted that S&P 500 futures were trading at 4,294, down 1.15% for the day.

For now, all eyes are on the US trade balance, the ISM non-manufacturing PMI and the market services PMI for new trade momentum.

Additional levels NZD / USD

Previous 8 economic market trends that will impact your business
Next Ringgit ends lower against the greenback ahead of US economic data | Money

No Comment

Leave a reply

Your email address will not be published.