- The NZD / USD hit its highest level since April 2018.
- The US dollar index remains relatively calm below 90.50.
- Mid-level data releases from the United States and New Zealand will follow.
The NZD / USD pair gained nearly 100 pips last week and continued its rally on Monday into the early hours of trading in Asia. After hitting its highest level since April 2018 at 0.7338, the pair lost traction and was last seen posting small daily gains at 0.7307.
Focus on mid-level data releases
In the absence of any significant fundamentals, the risky market environment at the start of the week gave NZD a boost. However, market sentiment appears to be getting cautious during the European session, with the S&P 500 Futures shedding 0.7%. Additionally, the German DAX 30 and UK FTSE 100 indices are both down more than 0.5% on the day.
If the main Wall Street indices start the day in the negative zone, the NZD / USD could struggle to stay in positive territory with the greenback regaining its strength.
Meanwhile, the US dollar index changed slightly on the day around 90:30. Later today, the Chicago Fed’s National Activity Index and the Dallas Fed’s Manufacturing Index will be shown in the US Economic Register. On Tuesday, New Zealand’s fourth-quarter retail sales report will be reviewed for new enablers.