NZD/USD treads waters to continue winning streak, trades above 0.5900, focus on US data
- NZD/USD consolidates around 0.5910 ahead of the releases of US macroeconomic data.
- The pullback in US Treasury yields undermined the US Dollar (USD).
- China-linked optimism is reinforcing the NZD/USD pair.
NZD/USD treads water near 0.5910 to continue its winning streak, during the Asian session on Tuesday. The pair strengthened due to the retreating US Dollar (USD), following the gains in stocks from the United States (US) and Europe amid US Treasury yields dipped.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, trades lower around 103.95 ahead of the US data releases. These datasets include Jolts Job Openings, Housing Price Index and Consumer Confidence later in the North American session.
Furthermore, the pullback in US Treasury yields is undermining the US Dollar (USD) due to the cautious mood after the US Federal Reserve (Fed) Chairman Jerome Powell advocated for supporting "higher for longer" interest rates at the Jackson Hole Symposium.
Positive sentiment linked to China is bolstering the NZD/USD pair, driven by Beijing's implementation of fiscal measures to stimulate its economy. During the weekend, Chinese authorities decided to lower the stamp duty on stock trading by 0.1%. Moreover, investors’ attention is currently focused on the four-day trip of US Commerce Secretary Gina Raimondo to Beijing, aimed at strengthening commercial relationships between the United States and China.
The market participants will also likely monitor the other top-tier economic data releases including the US Core Personal Consumption Expenditures (PCE) Index, weekly Jobless Claims and Nonfarm Payrolls during the week. On the other side, New Zealand’s Building Permits and ANZ – Roy Morgan Consumer Confidence are due to be released as well. These data releases are expected to offer valuable insights into the economic outlook of both countries, potentially influencing trading decisions involving the NZD/USD pair.