- Upbeat data from New Zealand provides a boost to NZD.
- US Dollar Index extends sideways grind near 98.30.
- Market action is expected to remain subdued on Thursday.
The NZD/USD pair gained traction during the Asian trading hours as the upbeat macroeconomic data releases from New Zealand allowed the NZD to gather strength against its major rivals. With the trading volume thinning out due to the Thanksgiving Day holiday in the US, the pair is consolidating its gains and was last seen trading at 0.6430, adding 0.17% on a daily basis.
Business sentiment improves in NZ
The data published by Australia and New Zealand Banking Group (ANZ) on Thursday showed the Business Confidence Index rose to -26.4 in November from -42.4 and came in better than the market expectation of -30.8. Additionally, the Activity Outlook Index rebounded to 12.9% from -35% to provide an additional boost to the kiwi.
Meanwhile, US President Donald Trump signed the Hong Kong human rights bill to further escalate the geopolitical tensions with China and capped the pair’s gains.
On the other hand, after rallying to a fresh two-week high of 98.44 on the back of the strong third-quarter Gross Domestic Product (GDP) growth, which rose to 2.1% in the second estimate from 1.9%, on Wednesday, the US Dollar Index retraced its gains and returned to 98.30 area, causing the pair to stay stuck in its daily range.
Technical levels to watch for
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