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  • NZD/USD is moving sideways in a very tight range on Thursday.
  • US Dollar Index recovers above 92.00 after dropping to lowest level since September.
  • Roy Morgan Consumer Confidence will be released from New Zealand on Friday.

The broad-based USD weakness allowed the NZD/USD pair to post its highest daily close since June 2018 at 0.7003 on Wednesday. With the trading conditions thinning out on Thursday, the pair seems to have gone into a consolidation phase and was last seen moving sideways near 0.7000.

DXY recovers modestly on Thursday

Following the mixed macroeconomic data releases, the FOMC’s November meeting minutes showed policymakers thought the Fed could provide more accommodation by increasing the pace of purchases or shifting to longer maturities. The US Dollar Index edged lower after this publication and touched its worst level in nearly three months at 91.84 in the early trading hours of the Asian session on Thursday.

The data from the US showed that the economic activity expanded by 33.1% on a yearly basis in the third quarter. Moreover, the Initial Jobless Claims rose by 30,000 to 778,000 and the Durable Goods Orders increased by 1.3% to beat the market expectation of 0.9%.

However, the bearish pressure surrounding the greenback seems to have softened on Thursday due to the Thanksgiving Day holiday in the US. At the moment, the DXY is posting small daily gains at 92.04.

On Friday, the Roy Morgan Consumer Confidence data from New Zealand will be looked upon for fresh impetus. Nevertheless, the pair is likely to extend its sideways grind ahead of the weekend. 

Technical levels to watch for

 

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