NZD/USD extends its upside beyond 0.6210 following NZ Building Permits

• NZD/USD adds to Monday’s gains above the 0.6200 key barrier.
• The US Chicago PMI for July came in at 42.8, up from 41.5 in June and versus 43 expected.
• The New Zealand Building Permits in June were up 3.5% MoM after a 2.23% decline in May.
• Market players will monitor the New Zealand Employment data, Nonfarm Payrolls later this week.

The NZD/USD pair trades on a positive note and extends its upside above the 0.6200 mark in the early Asian session. The pair currently trades around 0.6210, gaining 0.02% for the day. Market players await the New Zealand employment data on Wednesday for fresh impetus.

Meanwhile, the US Dollar Index (DXY), a measure of the value of the Greenback against a basket of six major currencies, consolidates near 101.85 following last week's gains against major rivals.

The United States published low-tier economic figures on Monday. The US Chicago Purchasing Managers Index (PMI) for July came in at 42.8 from 41.5 in June, versus 43 expected, while the Dallas Manufacturing Index edged higher to -20 in July from -23.2 in June.

Additionally, the annual US inflation data showed last week that the figure grew at its slowest pace in over two years. The US Bureau of Economic Analysis reported the Personal Consumption Expenditures (PCE) Price Index fell from 3.8% in May to 3% in June, below the market expectation of 3.1%. While the Federal Reserve's preferred measure of inflation, the Core PCE Price Index, came in at 4.1% annually, down from 4.6% in May and below market expectations of 4.2%. The softer data indicates pricing pressures are easing and may bring the Federal Reserve (Fed) closer to the end of its hiking cycle. This, in turn, might cap the upside in the US Dollar and act as a tailwind for NZD/USD.

On the other hand, Statistics New Zealand revealed on Tuesday that Building Permits in June were up 3.5% MoM after a 2.23% decline in May. Earlier this week, the National Bank of New Zealand showed that July's New Zealand ANZ Activity Outlook improved to 0.8%, above the expected 0.9% decline. Meanwhile, ANZ Business Confidence fell from -18 in June to -13.1 in July.

Looking ahead, New Zealand will release employment data on Wednesday. On the US docket, The US Bureau of Labour Statistics will release JOLTS Job Openings numbers on Tuesday, followed by ADP private sector employment on Wednesday and Nonfarm Payrolls on Friday. The economy is expected to have created 180,000 jobs. These events could significantly impact the US Dollar's dynamic and give the NZD/USD pair a clear direction.