NZD/USD drops below 0.6650 as USD gathers strengh
- Greenback shakes of the bearish pressure on Tuesday.
- US Dollar Index recovers above 96.80 following Monday's drop.
- Coming up: GDT auction in New Zealand, ISM Non-Manufacturing PMI data from US.
The NZD/USD pair came under renewed bearish pressure in the last hour amid broad-based USD strength. As of writing, the pair was trading at its lowest level in more than 10 days at 0.6642, losing 0.43% on a daily basis.
US Dollar Index pares Monday's losses
The poor performance of the EUR after the euro area inflation report on Tuesday seems to be helping the greenback find demand and outperform its rivals. The US Dollar Index, which closed the previous day 0.28% lower, gained traction and was last up 0.2% on the day at 96.81.
In the second half of the day, the ISM will release its Non-Manufacturing PMI from the US. Other data featured in the US economic docket will include Factory Orders and Trade Balance. Additionally, the bi-weekly Global Dairy Trade (GDT) auction from New Zealand will be looked upon for fresh impetus as well.
In the meantime, investors will be keeping an eye on fresh developments surrounding the US-Iran conflict. A negative shift in the market sentiment could weigh on the risk-sensitive NZD and cause the pair to stretch lower.
Technical levels to watch for