On Tuesday, the NZD/USD currency pair maintains its strong daily gains.
New Zealand’s upbeat economic data boosted the NZD.
Ahead of PMI data, the US Dollar Index remains in the green above 92.30.
During Tuesday’s Asian trading hours, the NZD/USD pair gained traction, reaching 0.7106, its highest level since mid-June. The pair is maintaining its gains as market action becomes more quiet ahead of crucial data releases from the United States. It was last seen trading at 0.7087, up roughly 0.9 percent on the day.
Earlier in the day, data from New Zealand indicated that the NZIER Business Confidence Index rose substantially in the second quarter, rising to 7% from -13 percent in the first quarter, giving the NZD a lift.
The significant rise in the positively associated AUD/USD pair following the Reserve Bank of Australia’s (RBA) hawkish policy move also aided the NZD/USD increase. The Reserve Bank of Australia (RBA) lowered weekly asset purchases from A$5 billion to A$4 billion on Tuesday.
Later in the session, the US Services PMI data from IHS Markit and the ISM will be scrutinized for new momentum. The Prices Paid component of the ISM PMI report will be closely watched by market players. When the same component of the ISM Manufacturing PMI hit a series high in June, the dollar outperformed its peers, and a similar reaction is likely. The US Dollar Index is up a smidgeon on the day ahead of these figures, at 92.33.
During the American session, the GDT Price Index from New Zealand will also be issued./n
