- US Dollar Index struggles to break above 100.
- Major European equity indexes post modest gains on Thursday.
- Coming up: Weekly Jobless Claims and Philly Fed Manufacturing Index data from US.
The NZD/USD pair erased more than 100 pips on Wednesday and stayed under modest bearish pressure during the Asian session. After touching a fresh weekly low of 0.5943, the pair staged a technical rebound and was last seen erasing 0.1% on the day at 0.5981.
The data published from New Zealand on Thursday revealed that the ANZ Monthly Inflation Gauge stayed unchanged at 0.1% on a monthly basis in March. Previewing the CPI data that will be published on April 20th, “we expect annual headline inflation to slow to just 1% by the end of the year and remain below this level for all of 2021, with only a gradual recovery thereafter,” said ANZ analysts.
Focus shifts to US data
Meanwhile, slightly improved market sentiment as reflected by European equity indexes’ modest gains seems to be helping the risk-sensitive kiwi limit its losses for the time being.
In the second half of the day, the weekly Jobless Claims data published by the US Department of Labor and the Federal Reserve Bank of Philadelphia’s Manufacturing Survey will be looked upon for fresh impetus. Ahead of these data, the US Dollar Index, which tested the 100 handle for the second straight day on Thursday, was up 0.25% on the day at 99.82, making it difficult for the pair to extends its recovery.
Technical levels to watch for
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