NZD/USD continues to push lower, trades around 0.7170 ahead of key US data
- NZD/USD stays under modest bearish pressure on Tuesday.
- US Dollar Index consolidates Monday's gains below 92.00.
- Focus shifts to Industrial Production and Retail Sales data from US.
The NZD/USD pair closed the first day of the week modestly higher but reversed its direction on Tuesday. As of writing, the pair was down 0.35% on a daily basis at 0.7174.
Eyes on key US data
Although the 10-year US Treasury bond yield is falling for the second straight day, the greenback continues to stay relatively resilient against its major rivals with the US Dollar Index trading little changed around 91.80.
Earlier in the day, the data from New Zealand showed Credit Card Spending in January declined by 10.6% on a yearly basis but failed to trigger a noticeable market reaction.
Later in the session, the US Census Bureau will release the February Retail Sales data. Investors expect a contraction of 0.5% and a better-than-expected reading could help the USD find demand in the second half of the day. Additionally, the US Federal Reserve will publish the Industrial Production and Capacity Utilization data for February.
Meanwhile, the S&P 500 Futures are flat on the day at 3,957, suggesting that the risk sentiment is unlikely to provide a directional clue to the pair.
On Wednesday, fourth-quarter Current Account data from New Zealand will be looked upon for fresh impetus. However, the market action is expected to remain subdued ahead of the FOMC's policy announcements.
Technical levels to consider