- NZD/USD is staging a rebound following the three-day slump.
- US Dollar Index stays in the red below 90.50.
- Focus shifts to US data dump ahead of Christmas holiday.
The NZD/USD pair closed the previous three trading days in the negative territory and reversed its direction on Wednesday. As of writing, the pair was up 0.62% on a daily basis at 0.7085.
DXY turns south amid risk flows
The improving market sentiment seems to be helping NZD/USD push higher. Although it’s still unclear whether the European Union and the United Kingdom will be able to reach a trade deal, the Euro Stoxx 50 and Germany’s DAX 30 indexes gain 0.65% and 0.83%, respectively. Furthermore, the S&P 500 Futures are up 0.35% on the day.
Later in the session, the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred gauge of inflation, Personal Income and Personal Spending figures will be released by the US Bureau of Economic Analysis. Other data featured in the US economic docket will include Durable Goods Orders, the University of Michigan’s Consumer Sentiment Index and November New Home Sales.
Ahead of the US data dump, the US Dollar Index (DXY) is losing 0.25% at 90.42. Nevertheless, the trading action is expected to remain subdued until the end of the week due to the Christmas holiday.
Technical levels to watch for
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