- NZD/USD is rising modestly ahead of US data releases.
- US Dollar Index stays relatively quiet around 91.00.
- Weekly Initial Jobless Claims and CPI data will be featured in US economic docket.
After climbing toward 0.7100 on Wednesday, the NZD/USD pair reversed its direction during the American trading hours and closed the day in the negative territory at 0.7019. Nevertheless, the pair is staging a rebound ahead of key macroeconomic data releases from the US and was last seen gaining 0.38% on a daily basis at 0.7046.
DXY loses recovery momentum
The negative shift seen in risk sentiment on Wednesday helped the greenback gather strength in the second half of the day. Renewed concerns over US lawmakers failing to reach an agreement on the coronavirus aid bill before the year-end and the lack of progress in the EU-UK trade talks caused investors to start seeking refuge. The US Dollar Index (DXY) closed above 91.00 after dropping to 90.70 earlier in the day.
On Thursday, the DXY is moving sideways in a tight range around 91.00. Later in the session, the US Department of Labor’s weekly Initial Jobless Claims and the US Bureau of Labor Statistics’ Consumer Price Index (CPI) data will be looked upon for fresh impetus. Markets expect the annual core CPI to remain unchanged at 1.6% in November and a higher-than-expected reading could provide a boost to the USD.
Meanwhile, investors will keep a close eye on Wall Street’s performance as well. At the moment, the S&P 500 Futures are posting small daily gains and a rebound in US stocks could put additional weight on the USD.
Technical levels to watch for
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