NZD/USD finds support near mid-0.6500s in choppy day

• NZD/USD is fluctuating in a narrow channel on Monday.
• US Dollar Index stays in the negative territory.
• Trading action is likely to remain subdued in the remainder of the day.

The NZD/USD pair gained around 50 pips last week and opened in a calm manner on Monday. After edging lower toward mid-0.6500s in the late Asian session, the pair recovered the majority of its losses and was last seen losing 0.18% on the day at 0.6567.

USD remains on the back foot at the start of the week

Earlier in the day, the only data from New Zealand showed that the Food Price Index rose by 0.5% on a monthly basis in June. On Tuesday, the ANZ's Monthly Inflation Gauge will be featured in the economic docket. Other data of interest for the kiwi will include Trade Balance from China.

On the other hand, the upbeat market mood, as reflected by decisive gains witnessed in major European equity indexes, is making it tough for the greenback to find demand. The US Dollar Index, which failed to break above 97 last week, was last down 0.13% on the day at 96.53, helping the pair erase its losses.

There won't be any significant macroeconomic data releases from the US on Monday. New York Fed President John Williams' speech at 15:30 GMT will be looked upon for fresh impetus.

Technical levels to watch for