NZD/USD moves sideways below 0.7200 amid a lack of fundamental drivers

• NZD/USD is trading in a narrow band at the start of the week.
• US Dollar Index is posting small daily gains above 91.00.
• There won't be any significant macroeconomic data releases from US.

The NZD/USD pair closed the previous week little changed and seems to be having a tough time determining its next short-term direction on Monday. As of writing, the pair was down 0.1% on a daily basis at 0.7190.

NFP-inspired USD selloff remains short-lived

The disappointing Nonfarm Payrolls (NFP) report from the US, which showed that the NFP increased by 49K in January, the greenback lost its strength against its rivals and NZD/USD gained 40 pips to turn positive for the week. Reflecting the negative reaction of the USD, the US Dollar Index (DXY) lost more than 0.5% on the last day of the week.

Amid a lack of significant fundamental drivers, the DXY is staging a technical correction and was last seen up 0.15% on the day at 91.18.

There won't be any data releases featured in the US economic docket and investors are likely to keep a close eye on US stocks. Lately, the USD has been showing a positive correlation with Wall Street's main indexes and a strong opening to the week could help the DXY edge higher. At the moment, the S&P 500 Futures are rising 0.3%.

In the early trading hours of the Asian on Tuesday, the Reserve Bank of New Zealand (RBNZ) will release its Inflation Expectations data for the first quarter.

Technical levels to watch for