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  • NZD/USD is trading in a very tight range on Thursday.
  • US Dollar Index stays flat on the day below 90.50.
  • Eyes on weekly Initial Jobless Claims data from US.

After closing the first two trading days in the positive territory, the NZD/USD pair lost its traction and closed in the negative territory on Wednesday amid souring market mood. With the trading conditions thinning out due to the Chinese New Year holiday, the pair trades in a tight range on Thursday and was last seen posting small daily gains at 0.7220.

Eyes on Wall Street, mid-tier US data

The only data from New Zealand on Thursday showed that Electronic Card Retail Sales in January declined by 0.4% on a monthly basis and dragged the annual growth rate down to 1.9% from 3.5%. Nevertheless, these figures were largely ignored by the market participants.

Later in the day, the US Department of Labor will publish its weekly Initial Jobless Claims data, which is expected to fall to 757K from 779K. Ahead of this report, the US Dollar Index is trading flat on the day at 90.40.

In the early trading hours of the Asian session on Friday, the Business NZ PMI data from New Zealand will be looked upon for fresh impetus.

Meanwhile, the S&P 500 Futures are up nearly 0.4% on the day. If Wall Street’s main indexes manage to push higher and erase Wednesday’s losses, the greenback could struggle to find demand and help NZD/USD finish the day in the positive territory.

Technical levels to watch for