NZD/USD reclaims monthly highs above 0.7070 post-inflation data, risk-on mood
- NZD/USD kickstarts the first trading session of the new trading week on a higher note
- US Dollar Index remains subdued below 94.00 helping NZD/USD to push higher.
- Higher Inflation and business sentiment support the recent rally for kiwi.
NZD/USD ticks higher on Monday in the early Asian trading hours post-critical inflation data. The depreciative move in the US dollar pushes NZD/USD higher. At the time of writing, NZD/USD is trading at 0.7075, up 0.17% for the day.
Kiwi extends the previous week’s momentum and reaches the levels last seen in September. The sentiment is upbeat following the higher Consumer Inflation data (CPI), which comes at 2.2% in September, beating the market expectations of 1.4% whereas the BusinessNZ Performance of Service Index (PSI) reads at 46.9 in September as compared to 35.6 in the previous month. Nevertheless, the upside seems limited as the policymakers are considering tightening restrictions in Auckland again.
On the other hand, the greenback remains under pressure on improved risk aversion. On Friday, the US Retail Sales data came at 0.7% in September, much above the market consensus of 0.2 declines. It is worth noting, that S&P 500 Futures is trading at 4,465, up 0.82% for the day.
As for now, all eyes are China’s Gross Domestic Product (GDP) data to take fresh trading impetus.
NZD/USD additional levels