NZD/USD consolidates below 0.7050 ahead of critical US data

• NZD/USD extends the gains of the previous session’s but loses the momentum.
• US Dollar Index tracks below 93.00, however, stays in the positive trajectory.
• NZD dollar maintains muted tone amid risk aversion amid falling equities.

NZD/USD exhibits some strength on Wednesday’s  Asian session following the previous day’s upside run. The pair opened higher and hovered in a very minute trading band with no meaningful traction.

At the time of writing, NZD/USD is trading at 0.7047, up 0.05% for the day,

The US Dollar Index (DXY), which measures the greenback performance against its six major rivals losses remains steady below 93.00 following an uptick in the US 10-year benchmark yields.

The US Treasury yields turned higher to above 1.3% on Tuesday after touching their one-week low near 1.27% since the beginning of the week.

On the other hand, Kiwi lost its momentum on risk aversion among investors.

It is worth noting that S&P 500 Futures were trading at 4,522, down 0.13% for the day. The decreasing coronavirus cases were the supportive factor for New Zealand’s dollar.

Meanwhile, the upside is capped after the recent data showed that the business confidence in the country tumbled to -14.2 in August from -3.8 in July.

As for now, all eyes are on US ADP Employment Change, ISM Manufacturing Purchase Managers Index (PMI) to take fresh trading impetus.

NZD/USD additional levels