NZD/USD remains pressured below 0.6700 ahead of Putin-Zelenskyy truce meet

• NZD/USD seesaws around 0.6680 ahead of the outcome of the Putin-Zelenskyy negotiations.
• The risk-sensitive assets find support as ultra-hot volatility slightly cools off.
• The DXY is approaching north on expectations of the Fed’s tightening monetary policy.

The NZD/USD pair has bounced superficially after a bearish gap opening on Monday around 0.6665, as the risk appetite slightly expanded on the expected Putin-Zelenskyy negotiations meet.

Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy have agreed to take negotiations without any preconditions. Well, the major outcome of the event is not the agreement of the nations but the unavailability of preconditions, which seems to provide fresh ground for the negotiation chatter. This has cheered the investors, cooling off the ultra-hot volatile environment.

On that, Ukrainian President Volodymyr Zelenskyy said "I do not really believe in the outcome of this meeting, but let them try, so that later not a single citizen of Ukraine has any doubt that I, as president, tried to stop the war,". Maybe the outcome won’t be material for the risk-perceived assets but it has trimmed the soaring uncertainty for a while.

Meanwhile, the US dollar index (DXY) has resumed marching north after a bullish opening gap on Monday. The DXY is trading 97.34, 0.84% above the last weeks’ closing price, at the time of writing. The overall negative tone of the market has underpinned the safe-haven greenback. Moreover, the expectations of an aggressive tightening policy by the Federal Reserve (Fed) is keeping the American dollar broadly underpinned. 

Apart from the headlines of the Russia-Ukraine war, investors will also focus on monthly Manufacturing PMI by the US Institute for Supply Management (ISM) data, which is due on Tuesday while the kiwi docket will report the Wednesday’s Building Permits data by the Statistics New Zealand.