- NZD/USD turned south after rising above 0.6900 on Thursday.
- US Dollar Index fluctuates in tight range below 93.00.
- Inflation data and FOMC Chairman Powell’s speech highlight US economic docket.
The NZD/USD extended its rally and touched its highest level since March 2019 at 0.6914 on Thursday. With the markets turning risk-averse ahead of the American session, the pair reversed its course and was last seen losing 0.2% on the day at 0.6867.
On Wednesday, the kiwi outperformed its rivals after the Reserve Bank of New Zealand (RBNZ) delivered a clear message that negative rates were not necessary yet. Additionally, RBNZ Governor Adrian Orr noted that the economic activity in New Zealand was more resilient than initially anticipated.
However, the risk-off market environment seems to be making it difficult for the kiwi to preserve its strength. At the moment, the S&P 500 futures are down 0.4% on the day, suggesting that Wall Street’s main indexes are likely to open the day in the negative territory.
Focus shifts to Powell speech, CPI data
Later in the day, the October Consumer Price Index (CPI) data from the US will be looked upon for fresh impetus. More importantly, FOMC Chairman Jerome Powell will be delivering a speech at the European Central Bank (ECB) Forum on Central Bank. At the moment, the US Dollar Index is posting modest daily losses at 92.93.
In the early trading hours of the Asian session on Friday, the October Business NZ PMI and September Food Price Index will be released from New Zealand.
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