NZD/USD drops further below 0.6200, to four-week lows

• US Dollar remains strong, DXY gains 0.45%. 
• US Empire Manufacturing jumps in March. 
• NZD/USD breaks previous lows, looks at the 200-day SMA. 

The NZD/USD is falling for the second day in a row and printed fresh lows after the release of US data, hitting at 0.6175, the lowest in four weeks. The US Dollar gained momentum across the board and resumed the upside. 

Dollar adds to gains after US data 

Data released on Monday showed an unexpected rebound from -24.60 to 10.8, against expectations of -18.0. The numbers boosted further the US Dollar while the Kiwi is lagging again.

Earlier on Monday, data from New Zealand showed a 0.8% increase in the Food Price Index during March and a modest decline in the Business NZ PSI in March to 54.4 from 55.8. The key report this week in New Zealand will be Q1 inflation early on Thursday.

NZD/USD is trading at 0.6175, at the lowest level since March 22. The pair is holding below previous April lows, looking vulnerable, near the 200-day Simple Moving Average that stands at 0.6160. 

Technical levels