- NZD/USD pair is trading in a narrow band following Thursday’s drop.
- US Dollar Index holds steady a little below 92.00.
- There won’t be any significant macroeconomic data releases featured in US economic docket.
The NZD/USD pair fell sharply on Thursday and erased all the gains it recorded on Wednesday. In the absence of significant fundamental drivers on the last day of the week, the pair seems to be struggling to make a decisive move in either direction and was last seen trading flat at 0.7165.
On Thursday, the sharp upsurge witnessed in the US Treasury bond yields provided a boost to the greenback. The US Dollar Index (DXY) rose nearly 0.5% as the benchmark 10-year US T-bond yield posted an impressive daily gain of 4.4%. Ahead of the weekend, the DXY is moving sideways around 91.90, not allowing NZD/USD stage a rebound.
Eyes on US-China talks
Meanwhile, the latest headlines surrounding the US-China talks in Alaska point to heightened geopolitical tensions between two superpowers.
Chinese Foreign Ministry spokesman Zhao Lijian noted that there was a lot of confrontation between the two sides and the Wall Street Journal reported on Friday that China has ramped up Iranian and Venezuelan oil purchases. If tensions continue to escalate, the China-sensitive NZD could start weakening its rivals in the coıming days.
The US economic docket won’t be featuring any significant macroeconomic data releases in the remainder of the day and the bond markets stay relatively quiet, suggesting that NZD/USD could extend its sideways grind during the American session.
Technical levels to watch for
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