• NZD / USD shows modest gains in European session.
  • The US dollar index remains relatively calm above 90.00 on Monday.
  • Trade action is expected to remain subdued due to the Memorial Day holiday in the United States.

The NZD / USD pair lost nearly 50 pips on Friday, but managed to close the week before in positive territory supported by the hawkish policy outlook from the Reserve Bank of New Zealand. At the start of the new week, the pair is slightly higher and was last seen up 0.2% to 0.7260.

DXY enters consolidation above 90.00

Earlier today, data from China showed economic activity in the services sector grew at a faster pace than expected in May, with the official non-manufacturing PMI improving to 55.2 from 54, 9 in April. Additionally, the NBS Manufacturing PMI came in broadly in line with analysts’ estimate of 51.

The US stock and bond markets will be closed due to the Memorial Day holiday on Monday and trade action is expected to remain subdued in the second half of the day. Meanwhile, the US Dollar Index (DXY) is fluctuating in a narrow range above 90.00, where it closed on Friday.

There will be no high-level data release from New Zealand on Tuesday, and investors will pay close attention to ISM Manufacturing PMI data from the United States.

Technical levels to watch

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