NZD/USD remains under pressure below 0.6700 amid a dented market mood

• The New Zealand dollar falls for four straight days, attributed to risk-off market sentiment.
• Geopolitical issues weigh on the NZD to boost the greenback prospects.
• US Consumer Confidence came lower than expected though investors mainly ignored it.

The New Zealand dollar slides during the North American session, trading at 0.6679 at the time of writing. A downbeat market sentiment portrayed by US equities trading in the red weighs on the NZD, boosting the safe-haven status of the greenback.

Eastern Europe conflict and FOMC monetary policy meeting dampen investors mood

Factors like the Federal Reserve monetary policy meeting and the Ukraine – Russia conflict keep investors nervous. Safe-haven assets like gold and low-yield currencies tend to benefit in times of geopolitical uncertainty. 

During the North American session, the US Department of Defense put 8,500 American troops under high alert and will be deployed IF Russia attacks Ukraine. At press time, the Ukraine President said that the situation is under control. They are working to ensure that the meeting between the Presidents of Ukraine, Russia, Germany, and France takes place as soon as possible, as reported by Reuters.

In the meantime, the US 10-year T-bond yield sits at 1.75% during the day, underpins the greenback with the US dollar index, which measures the buck’s value against its peers, climbs 0.17%, up to 96.080.

The US economic docket featured the Conference Board (CB) Consumer Confidence Index, which came at 113.80, down from December 115.2 reading.

According to Lynn Franco, Senior Director of Economic Indicators at The Conference Board, consumer confidence moderated a bit in January. Regarding inflation concerns, she noted that “… declined for the second straight month, but remain elevated after hitting a 13-year high in November 2021.” Further added that “looking ahead, both confidence and consumer spending may continue to be challenged by rising prices and the ongoing pandemic.”

Therefore, NZD/USD traders will take cues from market sentiment, which has been downbeat, influenced by the eastern Europ conflict. That alongside the Federal Reserve, monetary policy meeting, might keep traders on the sidelines before opening new bets in the pair.