NZD/USD extends its upside above 0.6200, focus on New Zealand Trade Data

• NZD/USD gains traction around 0.6224 amid the USD weakness.
• New Zealand’s Business NZ PSI climbed to 51.2 in November from 48.9 in the previous reading.
• Fed’s Goolsbee said on Sunday that it’s premature to declare victory over the inflation battle.
• Market players will monitor New Zealand’s Trade Balance, and US housing data, due on Tuesday.

The NZD/USD pair trades in positive territory for the sixth consecutive day during the early Asian session on Monday. The pair posts the highest level in months due to the US dollar weakness. NZD/USD currently trades near 0.6224, gaining 0.20% on the day.

The latest data from Business NZ on Monday showed that New Zealand’s Business NZ Performance of Services Index (PSI) grew into expansion territory, climbing to 51.2 in November from 48.9 in the previous reading. Additionally, the New Zealand Westpac-McDermott Miller Consumer Confidence Index in the fourth quarter (Q4) 2023 rose to 88.9, the highest in two years. This, in turn, boosts the New Zealand Dollar (NZD) and acts as a tailwind for the NZD/USD.

On the other hand, Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee said on Sunday that it’s premature to declare victory over the inflation battle, and the decisions on rate cuts will depend on economic data. Furthermore, Atlanta Fed President Raphael Bostic said the Fed can begin cutting the interest rate in the third quarter of 2024 if inflation falls as expected.

New Zealand will release Trade Data and the NZ Business Confidence survey on Tuesday. Also, the US housing data, including Building Permits and Housing Starts will be released on Tuesday. Traders will take cues from these data and find trading opportunities around the NZD/USD pair.