NZD/USD remains pressured below 0.6950 amid stronger USD

  • NZD/USD grinds lower on Tuesday in the early Asian session.
  • US Dollar Index near one-year high above 94.30 exerting pressure on NZD/USD.
  • COVID-19 restrictions, risk-aversion, high inflation woes check kiwi nerves.

NZD/USD surrenders the previous session’s gains on Tuesday in the Asian session. The buying pressure in the US dollar keeps NZD/USD edgy. At the time of writing, NZD/USD is trading at 0.6933, down 0.12% for the day,

The US Dollar Index (DXY), which measures the greenback performance against its six major rivals, trades at 94.37 near its highest since September 2020. The greenback attracts the capital flows on its safe-haven appeal amid surging energy prices, which fuels the inflationary pressure. In addition to that, Fed’s remains unfazed by the disappointing NFP data as expectations of tapering as early as November stands strong.

On the other hand, Kiwi lost its momentum on reduced risk appetite among investors in the wake of the latest COVID-19 restrictions and mixed economic data. In the latest development, New Zealand’s Prime Minister Jacinda Arden announced that Auckland will remain in alert level 3, step 1, for at least one more week whereas Waikato and Northland will stay in alert level 3 until October, 14. It is worth noting that S&P 500 Futures is trading at 4,347,25, down 0.80% for the day.

On the economic data side, the visitors arrival in New Zealand fell to 30209 in July from 51590 in June. Electronic card transactions rose to 0.9% in September.

As for now, all eyes are on the US JOLTS Job opening data to take fresh trading impetus.

 

Our Source

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