NZD/USD falls below 0.7000 on broad-based USD strength

• NZD/USD fell to a fresh weekly low on Tuesday.
• US Dollar Index stays in the positive territory above 92.00.
• Focus shifts to CB Consumer Confidence Index data.

Following last week's technical correction, the NZD/USD pair closed in the negative territory on Monday and extended its slide during the first half of the day on Tuesday. As of writing, the pair was trading at its lowest level since June 22 at 0.6983, losing 0.58% on a daily basis.

Rising US T-bond yields support USD

In the absence of significant fundamental drivers, the USD's market valuation remains the primary driver of NZD/USD's movements. The US Dollar Index, which tracks the greenback's performance against a basket of six major currencies, is currently rising 0.3% on the day at 92.15. The 2% increase witnessed in the benchmark 10-year US Treasury bond yield seems to be helping the USD outperform its rivals on Tuesday.

Later in the session, the Conference Board will release the June Consumer Confidence Index data. April Housing Price Index will be featured in the US economic docket as well.

In the meantime, major equity indexes in the US remain on track to open the day little changed, suggesting that the USD is likely to preserve its strength in the second half of the day.

On Tuesday, the ANZ Business Confidence and the ANZ Activity Outlook data from New Zealand will be looked upon for fresh impetus. 

Technical levels to watch for