NZD/USD consolidates daily gains near 0.69, Markit PMI eyed

• NZD/USD holds near 0.69 as USD struggled to recover.
• Markit will release manufacturing and service sectors PMI data from the U.S.
• Encouraging tourism data from New Zealand helps kiwi gather strength.

Following its steady recovery in the NA session on Thursday, the NZD/USD pair started the day on a positive note and extended its upside above the 0.69 mark before going into a consolidation in the second half of the day on Friday. As of writing, the pair was moving sideways near the 0.69 mark and was up 0.5% on the day.

Earlier today, the data from New Zealand showed that visitor arrivals, which showed a 9% contraction in April, came in at +6.2% on a yearly basis in May to help the kiwi preserve its bullish momentum.

On the other hand, the greenback continues to have a difficult time finding demand as buyers seem to have lost their control over the USD valuations after the US Dollar Index repeatedly failed to stay above the 95 mark. Later in the session, Markit is going to release the PMI data for the manufacturing and service sectors in the United States and positive figures could help the DXY retrace a part of its daily gains and end the week near its starting point of 94.54.

Technical outlook

On the back of today’s upsurge, the RSI indicator on the daily graph continued to march higher toward the 50 mark, suggesting that the bearish pressure continues to lose its strength.  On the upside, resistances could be seen at 0.6940 (Jun. 19 high), 0.6970 (50-DMA) and 0.7000 (psychological level). Near-term supports align at  0.6865 (daily low), 0.6800 (psychological level) and 0.6775 (Nov. 17 low).