After a brief rally, the NZD/USD fell out of favor.
The US Dollar Index is approaching multi-month highs.
In June, private sector employment in the United States increased more than projected.
The NZD/USD pair produced a minor recovery on Wednesday after losing about 100 pips in the first two days of the week, but struggled to maintain its momentum. The pair was almost unchanged on a daily basis at 0.6988 at the time of writing.
Despite the conflicting reports from New Zealand, the kiwi saw some demand earlier in the day. In June, the ANZ Activity Outlook Index increased to 31.6 percent from 29.1 percent, exceeding the market forecast of 29.1 percent. On the downside, the ANZ Business Confidence Index fell to -0.6 in July from -0.4 in June.
The Automatic Data Processing (ADP) Research Institute, on the other hand, stated that private sector employment in the United States expanded by 692,000 in June. This print outperformed the market’s expectation of 600,000, boosting the US Dollar Index (DXY).
The DXY is currently trading at 92.27, up 0.22 percent on the day, and is within striking distance of its multi-month high of 92.40 hit on June 18.
There will be no more US data releases for the rest of the day, thus the USD’s market value will likely continue to dictate NZD/USD moves. The May Building Permits statistics from New Zealand will be examined on Thursday for new impetus./n
