In the early Asian trading hours, the New Zealand dollar (NZD/USD) gains traction.
The demand for the US currency is being harmed by lower US Treasury yields.
Following optimistic economic statistics and rate rise forecasts, the risk-on mentality bolstered the kiwi.
In the early Asian trading session on Tuesday, the NZD/USD pair edged higher. The pair began on a weaker note, but quickly climbed to an intraday high of 0.7064.
The NZD/USD currency pair is currently trading at 0.7055, up 0.45 percent on the day.
The US Dollar Index (DXY), which tracks the greenback’s performance against its main counterparts, has lost steam and is now hovering around 92.20. Due to the US market’s holiday, activity remained low.
Kiwis, on the other hand, remained upbeat after the New Zealand Institute of Economic Research (NZIER) released its latest Quarterly Survey of Business Opinion (QSBO) for the first quarter, which revealed that 60 percent of financial service sector firms expect interest rates to rise in the coming year.
Meanwhile, according to the latest New Zealand Q2 Actual Business Confidence report, the country’s economy grew by 7.0 percent in the second quarter, compared to -13 percent the previous quarter.
Traders are currently anticipating statistics from the New Zealand Global Dairy Trade Price Index and the US Purchase Managers Index (PMI) to measure market sentiment./n
