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NZD/USD struggles to extend recovery near 0.5790 amid mixed US data
The New Zealand dollar is supported by falling oil prices, even as US durable goods and upcoming labor and Fed catalysts keep trading positions cautious.
NZD/USD held near 0.5790 on Monday but struggled to extend its recovery, with the New Zealand dollar getting only limited help from a weaker US dollar. FXStreet said the pair’s advance was also constrained by investors staying cautious ahead of the Federal Reserve’s monetary-policy decision.
Support for NZD came from a sharp decline in oil prices, which can lower imported energy costs for New Zealand, a country that relies heavily on fuel imports. Still, the impact on NZD/USD was described as modest as market focus shifted to upcoming US data.
In the US, durable goods orders rose 0.3% month over month in June, underscoring that momentum may be softening versus expectations of 1.6%. FXStreet also noted that orders excluding transportation rose 0.6%, while orders excluding defense increased 0.3%, suggesting underlying business demand remained relatively resilient.
Attention will turn next to the US ADP Employment Change four-week average, and a weaker reading could reinforce concerns about employment growth losing momentum and pressure the US dollar. FXStreet added that traders will also watch the US Housing Price Index, expected to rise 0.2% month over month, and July consumer confidence before the Wednesday Fed decision.