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  • NZD/USD stages modest rebound following Wednesday’s drop.
  • US Dollar Index edges lower, holds above 90.00.
  • Focus shifts to weekly Initial Jobless Claims data from US.

The NZD/USD pair came under strong bearish pressure in the late American session on Wednesday and lost nearly 80 pips on a daily basis. Ahead of mid-tier macroeconomic data releases from the US, the pair is posting modest recovery gains and was last seen rising 0.2% at 0.7180.

USD consolidates FOMC-inspired gains

In the minutes of its April meeting, the FOMC noted that some policymakers wanted to start planning adjustments to asset purchases if the economy continued to make progress toward the Committee’s goals. Additionally, some participants voiced their concerns over inflation rising to “unwelcome levels” before seeing sufficient evidence for a policy reaction.

The publication’s relatively hawkish tone provided a boost to US Treasury bond yields and the US Dollar Index (DXY)  rose 0.45%, snapping a four-day losing streak.

Ahead of the US Department of Labor’s weekly Initial Jobless Claims data, the DXY is down 0.15% on the day at 90.03. The Federal Reserve Bank of Philadelphia’s Manufacturing Survey will be featured in the US economic docket as well.

Meanwhile, the S&P Futures and the Dow Futures are both down around 0.4% on a daily basis, suggesting that safe-haven flows could dominate the financial markets and help the USD regather its strength.

During the Asian trading hours on Friday, Credit Card spending data from New Zealand will be looked upon for fresh impetus.

Technical levels to watch for

 

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