NZD/USD extends sideways grind below 0.7000 ahead of Powell's testimony
- NZD/USD fluctuates in a tight range below 0.7000 on Tuesday.
- US Dollar Index rebounds above 92.00 ahead of American session.
- FOMC Chairman Jerome Powell will testify at 1800 GMT.
Following a four-day losing streak, the NZD/USD pair managed to close the day in the positive territory on Monday. However, the pair struggled to preserve its bullish momentum on Tuesday and went into a consolidation phase. As of writing, NZD/USD was unchanged on the day at 0.6985.
USD selloff pauses on Tuesday
The data from New Zealand showed on Tuesday that the Westpac Consumer Confidence improved to 107.1 in the second quarter from 105.2. This reading beat the market expectation of 99.5 but the disappointing annual Credit Card Spending data for May, which came in at 27.2% vs. 70.2% expected, didn't allow the kiwi to gather strength.
Later in the session, May Existing Home Sales and the Richmond Fed Manufacturing Index data from the US will be looked upon for fresh impetus.
More importantly, FOMC Chairman Jerome Powell will testify before the House Select Subcommittee on the Coronavirus Crisis on the Fed's response to the crisis. Ahead of this event, the US Dollar Index (DXY) is posting small daily gains at 92.03.
In the meantime, Wall Street's main indexes remain on track to open the day flat, suggesting that the cautious market mood is likely to help the greenback stay resilient against its rivals.
Technical levels to watch for