NZD/USD remains side-lined near 0.6550 for second straight day
- US Dollar Index stays below 98 on Tuesday.
- Latest reports suggest that the US' extra demands caused trade talks to fail.
- Coming up: Consumer confidence data from the U.S. and the RBNZ's Financial Stability Report.
Ahead of the day's key events, the NZD/USD pair is moving sideways in an extremely tight range near 0.6550 mark for the second straight day. The fact that the U.S. market was closed on Monday due to the Memorial Day holiday caused the trading volume to stay thin and it seems like investors haven't yet found the next catalyst.
According to the latest headlines surrounding the U.S.-China trade conflict, trade negotiations failed in the late stages because the U.S. wanted to put in additional demands in the last second. The SCMP reported that the U.S. demands would "directly affect China's political and social stability." Nonetheless, antipodeans largely ignored those headlines.
In the second half of the day, the S&P/Case-Shiller Home Price Index and the Conference Board Consumer Confidence index will be published from the U.S. The US Dollar Index, meanwhile, is up 0.05% on the day at 97.80.
Later in the day, the RBNZ will be releasing its Financial Stability Report and Governor Orr will be delivering his remarks. The NZ economic docket will feature the ANZ's Activity Outlook and Business Confidence Index.
Technical levels to consider