NZD/USD drops to fresh weekly lows below 0.6600 as USD preserves strength
- NZD/USD trades at its lowest level since August 3 below 0.6600.
- US Dollar Index extends recovery beyond 93.50 on Monday.
- Disappointing business sentiment data from New Zealand weigh on kiwi.
The NZD/USD pair stayed relatively quiet near 0.6600 during the Asian session on Monday buıt lost its traction during the European trading hours. As of writing, the pair was trading at its lowest level in a week at 0.6587, losing 0.25% on a daily basis.
Dismal data hurt NZD
At the start of the week, the disappointing data from New Zealand made it difficult for the kiwi to find demand. The ANZ Business Confidence Index slumped from -31.8 to -42.4 in August and the ANZ Activity Outlook Index worsened from -8.9 to -17 for the same period.
On the other hand, after closing the previous week on a strong footing on the back of better-than-expected US Nonfarm Payrolls figures, the US Dollar Index (DXY) continues to edge higher on Monday. With the DXY clinging to modest daily gains near 93.60 on Monday, NZD/USD struggles to shake off the bearish pressure.
In the second half of the day, JOLTS Job Openings will be the only data featured in the US economic docket. On Tuesday, REINZ House Price Index and Electronic Card Retail Sales will be released from New Zealand. Nevertheless, these data are unlikely to trigger a significant market reaction and the USD's market valuation could continue to drive the pair's movements.
Technical levels to watch for