NZD/USD recovers above 0.67 amid USD weakness

• US Dollar Index stays near weekly lows below 96.50.
• Positive sentiment helps kiwi recovery its losses.
• Coming up: Trade balance and home sales data from the U.S.

The NZD/USD pair fell to its lowest level since early November at 0.6685 on Thursday but took advantage of the broad-based USD weakness and staged a modest rebound on Friday. As of writing, the pair was trading at 0.670.6718, adding 0.25% on a daily basis.

The markets’ risk perception and the greenback’s valuation stay as the drivers of the pair’s price action this week. With the U.S. equity futures pointing to a strong start to the last day of the week, the risk-sensitive kiwi gathered strength. On the other hand, the US Dollar Index, which tested the 97 handle earlier this week, stays under pressure today to provide an additional boost to the pair.

In the early NA session, goods trade balance, new home sales & pending home sales, as well as the Chicago PMI will be released from the United States. Ahead of the data, the DXY is down 0.25% on the day at 96.35.

Technical levels to consider