- The NZD / USD lost strength after renewing its weekly high at 0.6967.
- The US dollar index extends the rally past 93.00 on Wednesday.
- US durable goods orders fell less than expected in July.
After an impressive two-day rally, the NZD / USD pair hit its highest in one week at 0.6967 on Wednesday, but failed to maintain its bullish momentum in the second half of the day. At the time of writing, the pair was down 0.06% on a daily basis to 0.6944.
DXY pushes higher after durable goods orders data
The renewed strength of the USD seems to force the NZD / USD to drop slightly at the start of the US session. The US dollar index (DXY), which lost 0.6% in the first two days of the week, was up 0.2% to 93.06.
Earlier today, data from the United States showed that durable goods orders in July were down 0.1% on a monthly basis. This reading is better than market expectations for a 0.3% drop and has helped the greenback outperform its rivals.
Earlier today, Statistics New Zealand reported that the trade deficit widened slightly in July, but this report was largely ignored by market participants.
In the meantime, major Wall Street indices remain on track to open near Tuesday’s closing levels, suggesting neutral market sentiment should allow DXY to stay in positive territory.