- The momentum of kiwi losses against the US dollar remains in a range
- US data: New home sales skyrocket in July as consumer confidence plummets in August
The NZD / USD climbed to 0.6558 after the start of the US session, but then turned lower, falling back to the 0.6535 area. Since Friday, the pair has not been able to move away from this level. The upward movement took place against a backdrop of the greenback’s decline which then regained strength, keeping the NZD / USD in a narrow range.
The greenback posted mixed results on Tuesday, rising sharply against the yen but falling against most major currencies. Economic data for the United States is mixed. While new home sales have beaten expectations to reach their highest level since December 2006 in July, consumer confidence figures for August were sharply lower. Most of the market players have ignored these figures.
On Wall Street, stock prices have spent most of the time in positive territory but have moved in the last few hours. The Dow Jones fell 0.42% while the S & P500 and the Nasdaq gained modestly. Previously, optimism about the relationship between the United States and China had improved market sentiment.
The NZD / USD continues to move sideways, around 0.6535. A consolidation above 0.6550 could indicate further gains, while below 0.6515 losses below 0.6500 seem likely. In the G10 space, the kiwi is among the least efficient. AUD / NZD is trading slightly higher on Tuesday. Early Wednesday, the July trade balance report is due.