- Renewed trade optimism helps antipodeans gather strength on Friday.
- US Dollar Index stays in its daily range above the 99 handle.
- Core Personal Consumption Expenditure (PCE) Price Index is expected to improve to 1.8%.
After closing below the 0.63 handle on Thursday, the NZD/USD pair edged lower toward the 0.6280 area on Friday but recovered its losses ahead of the key macroeconomic data releases from the United States (US). As of writing, the pair was virtually unchanged on the day at 0.6298.
Trade headlines steal the spotlight toward the end of the week
Positive comments about the upcoming high-level US-China trade talks help the trade-sensitive antipodeans such as the NZD stay resilient against the USD on Friday. Earlier in the day, China’s Foreign Minister Wang said that the US had shown goodwill be waiving tariffs on Chinese products and voiced their commitment to making progress in negotiations in Washington, which is expected to take place on October 10th according to the CNBC.
On the other hand, the broad-based USD strength keeps the pair’s upside capped for the time being. Ahead of the key macroeconomic data releases, which include the PCE Price Index, Durable Goods Orders, Personal Income, Personal Spending, and the University of Michigan’s Consumer Sentiment Index, the US Dollar Index is clinging to this week’s decisive gains near the 99.20 mark.
Markets expect the core PCE Price Index, the Federal Reserve’s favourite gauge of inflation, rise to 1.8% in August from 1.6% in July.
Technical levels to watch for
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