The NZD/USD pair is still on a downward trend.
After a fresh coronavirus outbreak in the Asia-Pacific region, the US dollar has risen.
The Kiwi is losing ground versus the US dollar as investors become more risk averse.
NZD/USD is under pressure due to strong purchasing pressure in the US dollar. On Tuesday, the pair traded with pessimism and broke through 0.7000 in the early US session.
NZD/USD is trading at 0.6994 at the time of writing, up 0.01 percent on the day.
NZD/USD is falling due to a comeback in the US Dollar Index (DXY), which measures the greenback’s performance against six main rivals. With robust advances, the US dollar has risen above 92.0.
Investors are nonetheless wary of the increasing Delta variation COVID-19, which has resurfaced as a source of concern. The demand for the US dollar as a worldwide safe haven asset is being bolstered by an increase in corona cases in the Asia-Pacific region.
In terms of domestic economic indicators, the S&P CoreLogic Case-Shiller Home Price Index increased 14.9 percent in April, outperforming market forecasts of 14.5 percent. Lower mortgage rates aided the index’s record-breaking expansion.
Kiwi, on the other hand, lost ground as risk appetite deteriorated as a result of an increase in COVID-19 cases in neighboring countries, which investors feared might undermine the global economic recovery.
Meanwhile, comments from RBNZ Governor Adrian Orr that economic activity is returning to pre-COVID-19 levels failed to boost the NZD.
The S&P 500 Futures were trading at 4,284 with a gain of 0.01 percent.
Traders are currently waiting for the ANZ Business Confidence data from New Zealand. The Chicago PMI and Pending Home Sales data from the United States will be closely followed for new trade impetus.
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