After a big rise earlier in the day, the NZD/USD pair reversed course.
In the American session, the US Dollar Index remains above 92.50.
The main indices on Wall Street are falling, signaling a change in market sentiment.
On Tuesday, the NZD/USD pair hit 0.7106, its highest level since mid-June, but lost all of its gains in the second half of the day. At the time of writing, the pair was trading at 0.7010, down 0.2 percent.
Earlier in the day, the significant rise in the AUD/USD pair, as well as positive statistics from New Zealand, boosted the NZD/USD pair. The NZIER Business Confidence Index increased substantially to 7% in the second quarter from -13 percent in the first quarter, according to data from New Zealand. Following its July meeting, the Reserve Bank of Australia (RBA) opted to reduce weekly asset purchases from A$5 billion to A$4 billion.
On the downside, the bi-weekly GDT Price Index came in at -3.6 percent, falling short of experts’ expectations of -0.3 percent.
The Institute for Supply Management (ISM) revealed in the early American session that the Services PMI fell to 60.1 in June from 64 in May, falling short of the market forecast of 63.5. The Prices Paid Index fell to 79.5 from 80.6, and the Employment Index fell to 49.3 from 55.3, according to the publication’s underlying information.
Although the market’s initial reaction to the report was modest, the negative shift in sentiment noticed in the market helped USD beat its competitors. The US Dollar Index soared above 92.50 and was last seen rising 0.35 percent on a daily basis, despite Wall Street’s key indexes losing ground. The Dow Jones Industrial Average and the S&P 500 indices, meanwhile, are down 1.25 percent and 0.8 percent, respectively./n
