NZD/USD Pressured Despite Weaker US Dollar

The US session was mixed with the US dollar dragged downwards in the absence of any catalyst, and was weakened further because of Monday’s manufacturing data. The Dallas Fed Manufacturing Index fell to frustrating -17.7 in June, down from the previous reading of -7.3 in May, putting it at its lowest level since May 2020.

At 0.6295, the NZD/USD pair was pressured despite the growing consensus of a weaker US dollar. The pair is down by 0.28% and has fallen from a high of 0.6326 to a score a low of 0.6281.

Labour market indicators continue to show robust growth in employment and longer workweeks. Prices and wages both continued to increase, but manufacturers are less optimistic about the future,” analysts at ANZ Bank explained.

The NZD is lower this morning as risk assets take a breather and US bond yields resume their slow upward march,” analysts at ANZ Bank added. Indeed, US stocks pulled back, lacking a catalyst while investors remain concerned over inflation and tightening Fed policy.