NZD/USD drops to mid-0.6600s ahead of mid-tier US data
- NZD/USD turns south after posting modest losses on Monday.
- US Dollar Index rebounds toward 94.00 on Tuesday.
- CB Consumer Confidence data will be featured in US economic docket.
The NZD/USD pair closed the first day of the week in the positive territory on Monday and touched its highest level of 2020 at 0.6703 in the early trading hours of the Asian session on Tuesday. However, with the greenback starting to gather strength against its major peers, the pair reversed its direction and was last seen losing 0.55% on the day at 0.6645.
DXY recovers toward 94.00
The cautious market mood, as reflected by falling global equity indexes, seems to be helping the USD find demand on Tuesday. The US Dollar Index (DXY), which extended its losing streak into a seventh straight day on Monday, is now up 0.15% on the day at 93.80. Additionally, the DXY's rebound seems to be supported by a technical correction as well.
In the second half of the day, the Conference Board's Consumer Confidence and the Richmond Fed Manufacturing Index data will be featured in the US economic docket.
More importantly, the FOMC will start its two-day meeting on Tuesday and announce its monetary policy and interest rate decisions on Wednesday.
Earlier in the day, Statistics New Zealand reported that Total Filled Jobs improved to 2.2 million in June from 2.17 million in May but failed to provide a boost to the NZD.
Technical levels to watch for