Search ForexCrunch
  • NZD/USD continues to push lower following Wednesday’s decline.
  • US Dollar Index edges higher toward 91.00 on Thursday.
  • Eyes on US PPI and Initial Jobless Claims data.  

The NZD/USD pair lost more than 100 pips on Wednesday as the greenback capitalized on the April inflation report. With the USD preserving its strength, the pair extended its slide and touched a fresh nine-day low of 0.7135 during the European trading hours. As of writing, NZD/USD was down 0.25% at 0.7138.

DXY closes in on 91.00

The US Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose to 4.2% in April from 2.6% in March. This reading beat the market expectation of 3.6% and triggered a strong rally in the US Treasury bond yields. With the benchmark 10-year US T-bond yield gaining more than 4%, the US Dollar Index (DXY) climbed toward 91.00.

Ahead of the US Department of Labor’s weekly Initial Jobless Claims data and the April Producer Price Index (PPI) figures, the DXY is up 0.1% on the day at 90.85.

In the meantime, Wall Street’s main indexes remain on track to start the day in the negative territory, suggesting that safe-haven flows could help the USD continue to outperform its rivals in the second half of the day.

On Friday, the Business NZ PMI data from New Zealand will be looked upon for fresh impetus.

Technical levels to watch for

 

Expert score

5

Etoro - Best For Beginner & Experts

  • 0% Commission and No stamp Duty
  • Regulated by US,UK & International Stock
  • Copy Successfull Traders
Your capital is at risk.