- NZD/USD trade in a narrow range on Tuesday.
- Risk rally appears to have lost steam.
- US Dollar Index remains in red ahead of US data.
The upbeat data from China and rising risk appetite boosted the NZD versus its rivals at the start of the week. NZD/USD hit an 8 month high at 0.6920 on Monday but ran out of steam. At the time of writing, NZD/USD trades 0.12% lower at 0.6895.
Vaccine optimism following Moderna’s announcement lifted risk sentiment. However rising covid cases in Europe points to additional lockdown measures before a vaccine is widely available. This is dragging on risk sentiment pulling US equity futures lower.
Eyes on US data
US Dollar Index (DXY) is trending southwards for the fourth straight day on Thursday limiting losses in NZD/USD..
Looking ahead US Retail Sales, Industrial Production and Business Inventories data will be in focus. Retail Sales are expected to rise by 0.5% in October. A weak print could boost safe haven flows to drag on NZD/USD.