NZD/USD climbs above 0.6200 on broad USD weakness

• NZD/USD gained traction after finding support below 0.6200 on Friday.
• US Dollar Index tests 98.00 ahead of key macroeconomic data releases.
• US President Trump is expected to host a news conference on China.

After trading defensively and falling below 0.6200 during the Asian trading hours, the NZD/USD pair gained traction in the last hour and climbed to a fresh daily high of 0.6228. As of writing, the pair was up 0.2% on the day at 0.6220.

Earlier in the day, the data from New Zealand revealed that the ANZ Consumer Confidence Index improved to 97.3 in May from 84.8. However, the NZD struggled to capitalize on this upbeat data as investors remained cautious following US President Donald Trump’s announcement of a news conference on China on Friday.

USD remains on the back foot ahead of key data

On the other hand, the greenback is struggling to find demand despite the risk-averse market environment. The US Dollar Index, which closed the last three days in the negative territory, extended its slide on Friday and was last seen losing 0.37% on the day at 98.09.

Later in the day, the US Bureau of Economic Analysis will release the PCE Price Index data, the Federal Reserve’s preferred gauge of inflation, alongside the Personal Spending and Personal Income figures.

Previewing these data, “the PCE price figures and income and spending results for April, while historically interesting, will add nothing to the Fed’s understanding of the depth of the economic black hole,” said FXStreet analyst Joseph Trevisani. “Its policy response was presciently set more than two months ago.”

Technical levels to watch for