- US Dollar Index stays in upper-half of its weekly range.
- Sour market mood weighs on antipodeans on Thursday.
- Coming up: Goods Trade Balance, Durable Goods Orders and Jobless Claims from US.
The NZD/USD pair closed the previous day flat near 0.67 but struggled to stage a meaningful recovery during the Asian session amid a lack of significant fuındamental drivers.
With the market sentiment turning sour, which is reflected upon falling US T-bond yields, during the European trading hours, risk-sensitive NZD came under renewed bearish pressure and touched its lowest level in ten days at 0.6684. Although the pair found support and started a corrective move, it remains in the negative territory below the 0.67 handle.
Meanwhile, ahead of the day’s critical macroeconomic data releases from the US, the US Dollar Index continues to move sideways near the 97.70 area, allowing the pair to limit its losses for the time being.
Eyes on US data
Goods Trade Balance and Durable Goods Orders data later today will be watched closely by market participants as they are likely to provide fresh insights into Friday’s GDP data and a possible shift in the Federal Reserve’s monetary policy outlook next week.
Previewing the data, “A welcome jump in the volatile nondefense aircraft segment (Boeing) and a rise in vehicle orders are likely to support headline growth. Although we pencil in a -0.2% m/m retreat in durable goods ex-transportation, we see scope for a small 0.2% gain in core capex orders,” TD Securities analysts said.
Technical levels to consider
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