NZD/USD rebounds above 0.7200 supported by risk flows

The poor performance of major equity indexes in Asia helped the greenback continue to gather strength against its rivals at the start of the day on Tu  |  26/01/2021 10:47
  • NZD/USD turned north after edging lower in Asian session.
  • US Dollar Index posts small daily gains above 90.40.
  • Upbeat market mood is helping NZD find demand on Tuesday.

The poor performance of major equity indexes in Asia helped the greenback continue to gather strength against its rivals at the start of the day on Tuesday. After dropping to a daily low of 0.7167, however, the NZD/USD pair staged a rebound on the back of improving sentiment and was last seen gaining 0.1% on the day at 0.7202.

DXY continues to react to shifts in risk perception

Earlier in the day, the data from New Zealand showed that the Business NZ Performance of Services Index rose to 49.2 in December from 46.7 in November but this reading failed to help the kiwi find demand. 

Reflecting the risk-positive market environment during the European trading hours, Germany's DAX 30 and the Euro Stoxx 50 indexes both rise more than 1%. The US Dollar Index (DXY), which advanced to a fresh six-day high of 90.61, is currently clinging to small daily gains at 90.45.

Later in the session, the Conference Board's Consumer Confidence Index and the Housing Price Index data will be featured in the US economic docket. 

Meanwhile, Wall Street's main indexes look to start the day in the negative territory with the S&P 500 Futures losing 0.25%. Investors seem to have adopted a cautious stance amid renewed concerns over a delay to the passage of the $1.9 trillion US stimulus bill. If US stocks perform poorly on Tuesday, the greenback could gather strength and make it difficult for NZD/USD to push higher in the second half of the day. 

Technical levels to watch for

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com