- NZD/USD is pushing higher after closing in the red on Thursday.
- US Dollar Index stays calm below 92.50 on Friday.
- Wall Street looks to start the day modestly lower.
After advancing to its highest level since late 2018 at 0.6946 on Wednesday, the NZD/USD staged a technical correction and closed in the negative territory on Thursday. With the relatively upbeat market mood providing a boost to the risk-sensitive kiwi on Friday, the pair gained traction and was last seen trading at 0.6940, where it was up 0.4% on a daily basis.
NZD/USD headed for third straight weekly gain
In the absence of significant fundamental drivers, market sentiment continues to impact NZD/USD’s movements. At the moment, major European equity indexes gain between 0.5% and 0.75% and the 10-year US Treasury bond yield is up 1.6% to confirm the risk-positive environment.
However, the S&P 500 Futures are posting modest daily losses, suggesting that risk flows could soften in the second half of the day and help the US Dollar Index (DXY) edge higher. Currently, the DXY is virtually unchanged at 92.35.
Earlier in the day, the data from New Zealand showed that Credit Card Spending in October contracted by 6.3% on a yearly basis. This reading came in much better than the market expectation for a decline of 14.5% and helped the kiwi start the day on a strong footing.
There won’t be any macroeconomic data releases from the US on Friday and NZD/USD remains on track to close the third consecutive week in the positive territory.
Technical levels to watch for
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