- Nonfarm Payrolls in the US is expected to come in at 89K in October.
- US Dollar Index stays flat on the day below 97.50.
- NZD/USD remains on track to finish in the green for the week.
The NZD/USD pair continued to edge higher during the Asian trading hours and touched its best level in seven weeks at 0.6442. With the market action turning subdued ahead of today’s key macroeconomic data releases from the United States, the pair started to consolidate its gains and was last seen trading at 0.6425, adding 0.2% on the day.
NZD rises on strong Chinese PMI data
Although there were no fundamental drivers from New Zealand that could have ramped up the demand for the Kiwi, the upbeat Caixin Manufacturing Purchasing Managers’ Index (PMI) data from China, which rose to 51.7 in October from 51.4 in September and beat the market expectation of 51, provided a boost to the antipodeans.
On the other hand, the US Dollar Index is moving sideways near the 97.30 mark on Friday, allowing the NZD valuation to dominate the pair’s movements.
In the American session on Friday, the Nonfarm Payroll (NFP) report from the US and the Institue for Supply Management’s (ISM) Manufacturing Purchasing Managers’ Index (PMI) will be looked upon for fresh impetus. Due to the fact that the NFP reading is already expected to come in at a weak 89K due to GM strikes in October, the PMI report’s impact is likely to be more significant.
Technical levels to watch for
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