NZD/USD rebounds modestly, trades above 0.6400
- NZD/USD slumped to a fresh 12-day low below 0.6400.
- Dİsappointing data from China weighed on the NZD during the Asian session.
- Broad-based USD strength causes the pair to stay in the negative territory.
The NZD/USD pair lost nearly 60 pips last week and stretched lower during the Asian session on Monday. After sliding to its lowest level in 12-days at 0.6381, the pair recovered modestly and was last seen trading at 0.6425, still down 0.3% on a daily basis.
Earlier in the day, the disappointing data from China weighed on the NZD. Annual Retail Sales in May decreased by 2.8% and missed the market expectation of -2%. Moreover, Industrial Production expanded by 4.4% but fell short of analysts' estimate for an increase of 5%.
Meanwhile, the risk-averse market environment, as reflected by a sharp drop in global equity indexes, is making it difficult for the kiwi to show resilience against its major peers. At the moment, Germany's DAX 30 Index is losing 1.2% on the day and the S&P 500 futures are down around 2%.
USD starts the week on strong footing
On the other hand, the US Dollar Index, which gained more than 1% in the second half of the previous week, is clinging to modest gains on Monday. Ahead of the NY Fed's Empire State Manufacturing Survey, the index is up 0.07% on the day at 97.15. In case Wall Street's main indexes suffer heavy losses on Monday, the greenback could preserve its strength.
On Tuesday, the economic calendar will feature the Westpac Consumer Survey and the ANZ Monthly Inflation Gauge from New Zealand.
Technical levels to watch for