- NZD/USD is rising for the second straight day on Friday.
- US Dollar Index goes into consolidation below 97.50.
- Focus shifts to Personal Spending and Personal Income data from the US.
Following Wednesday’s sharp drop, the NZD/USD pair staged a modest rebound and gained 20 pips on Thursday. With the trading action turning subdued on Friday, the pair edged slightly higher on Friday and was last seen gaining 0.3% on the day at 0.6448.
The recovering market sentiment seems to be helping the risk-sensitive kiwi stay resilient against its rivals. At the moment, major European equity indexes are gaining between 1% and 1.65%. Moreover, the S&P 500 futures stay in the positive territory, pointing out to a positive opening in Wall Street on Friday.
Eyes on US data
In the second half of the day, the US Bureau of Economic Analysis (BEA) will release the Personal Consumption Expenditures (PCE) Prices Index data, which is the Federal Reserve’s preferred gauge of inflation. The report will also include Personal Spending and Personal Income figures. Ahead of these data, the US Dollar Index is posting small daily losses at 97.30.
Markets expect Personal Spending to increase by 9% in May following April’s decline of 13.6%. A better-than-expected reading could provide an additional boost to risk-on flows and weigh on the safe-haven greenback.
Technical levels to watch for
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