NZD/USD extends rally toward 0.6700 on broad USD weakness
- NZD/USD continues to advance toward 0.6700 on Wednesday.
- US Dollar Index tests 95.00 ahead of mid-tier US data.
- Risk perception is likely to continue to impact the pair's movements.
The NZD/USD pair rose sharply on Tuesday and registered its best daily close since early January at 0.6646. After staying relatively calm during the Asian session, the pair regained its traction in the last hour and was last seen gaining 0.33% on a daily basis at 0.6666.
DXY fails to stage a rebound
The broad-based selling pressure fueled the NZD/USD's rally on Tuesday. The greenback struggled to find demand as a safe-haven in the risk-positive market atmosphere and the US Dollar Index (DXY) lost 0.7% to close at 95.15. Although global equity indexes are staging a technical correction and posting moderate losses, the DXY continues to push lower and is now losing 0.15% on the day at 95.00.
The only data featured in the US economic docket on Wednesday will be the US National Association of Realtors' Existing Home Sales, which is expected to show an increase of 24.5% in June. Nevertheless, investors are likely to ignore this report and stay focused on Wall Street. At the moment, the S&P 500 futures are down 0.35%, suggesting that US stocks could open in the red and help the USD start erasing its losses against its rivals.
On The other hand, there won't bey any significant macroeconomic data releases from New Zealand on Thursday and market participants will wait for Friday's Trade Balance figures.
Technical levels to watch for