NZD/USD renews monthly lows, closes in on 0.6500

• NZD/USD is falling for the fourth straight day on Thursday.
• US Dollar Index stays in the positive territory near mid-94s.
• Focus shifts to mid-tier macroeconomic data releases from the US.

The NZD/USD pair lost nearly 100 pips on Wednesday and extended its slide to a fresh monthly low of 0.6517 on Thursday. As of writing, the pair was down 0.28% on a daily basis at 0.6528.

Earlier in the day, the data published by Statistics New Zealand showed that the country posted a trade deficit of NZD353 million following July’s surplus of NZD447 million and made it difficult for the kiwi to stage a rebound.

DXY rally remains unabated

On the other hand, the US Dollar Index (DXY) closed the fourth straight day in the positive territory on Wednesday as the poor performance of Wall Street’s main indexes helped the USD find demand as a safe-haven. With risk flows struggling to take control of financial markets, the DXY is posting modest daily gains at 94.45 ahead of the American session.

Later in the day, the US Department of Labor’s weekly Initial Jobless Claims, the US Census Bureau’s New Home Sales and Kansas Fed’s Manufacturing Activity data will be looked upon for fresh impetus. Meanwhile, FOMC Chairman Jerome Powell will appear before Congress on the second day of his testimony. However, Powell’s remarks are expected to be identical to his opening statement from Tuesday and Wednesday. 

There won’t be any data releases from New Zealand during the Asian session on Friday and the USD’s market valuation is likely to remain the primary driver of USD/CAD’s movements.

Technical levels to watch for