- NZD/USD is roaring back to lift after slumping last week.
- Risk-on mood in the market is supporting NZD .
- US Manufacturing PMI data will be in focus.
NZD/USD lost 70 pips last week and before steadying around 0.6600 in the Asian session on Monday. The market mood is lifting ahead of the American session, lifting NZD/USD which is trading at a daily high of 0.6630, up 0.18% on the day.
US presidential election & RBA policy announcements
New Zealand Building Permits in September rose by 3.6% after July’s increase of 0.2% but was shrugged off by market participants.
European equity indexes are up between 1.2% and 1.9% on the day Reflecting the risk on mood. S&P 500 futures are rising 1.4%, indicating that Wall Street’s main indexes are likely to start the day higher.
The US Dollar Index, which rallied over more than 1% last week, is consolidating its gains near 94.00 as investors show a cautious side preferring to sit on the sidelines ahead of the US presidential elections.
Looking ahead, the IHS Markit and the ISM will be releasing the Manufacturing PMI data for October. In the Asian session on Tuesday, the Reserve Bank of Australia (RBA) is expected to lower its policy rate and a reaction in AUD/USD could impact the positively-correlated NZD/USD’s movements.