- The NZD / USD lost its traction after updating the weekly high at 0.6967.
- The US Dollar Index extends the recovery beyond 93.00 on Wednesday.
- Durable goods orders in the US fell less than expected in July.
After an impressive two-day rally, the pair NZD / USD It reached its highest level in a week at 0.6967 on Wednesday, but was unable to preserve its bullish momentum in the second half of the day. At time of writing, the pair was down 0.06% on the dua to 0.6944.
DXY rises further after durable goods orders data
The renewed strength of the USD appears to be forcing the NZD / USD to fall in the early hours of the US session. The US Dollar Index (DXY), which lost 0.6% in the first two days of the week, rose 0.2% to 93.06.
Earlier in the day, data from the US revealed that July durable goods orders declined 0.1% on a monthly basis. This reading was better than the market’s expectation of a 0.3% decline and helped the dollar outperform its rivals.
Hours earlier, Statistics New Zealand announced that the trade deficit widened slightly in July, but this report was largely ignored by market participants.
Meanwhile, the major Wall Street indices are still on track to open near Tuesday’s closing levels, suggesting that neutral market sentiment is likely to allow DXY to remain in positive territory.
Technical levels
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