- NZD/USD is fluctuating in a tight range below 0.7100 on Thursday.
- US Dollar Index remains under modest bearish pressure around 91.00.
- Eyes on Initial Jobless Claims and Services PMI data from US.
After climbing to its highest level since April 2018 at 0.7085 on Wednesday, the NZD/USD pair seems to have gone into a consolidation phase. As of writing, the pair was down 0.1% on the day at 0.7062.
USD selloff limits NZD/USD’s downside
The only data from New Zealand showed on Thursday that the ANZ Commodity Price Index in Novemöber rose by 0.9% but was largely ignored by the market participants.
Meanwhile, the risk-averse market environment made it difficult for the kiwi to gather strength against its rivals. At the moment, major European equity indexes trade in the negative territory and the S&P 500 Futures are down 0.15%, suggesting that risk flows struggle to retake the control of the financial markets.
On the other hand, the broad-based USD weakness is helping NZD/USD keep its losses limited. The US Dollar Index (DXY) lost nearly 1% in the last two days and touched its lowest level in more than 30 months at 90.83 on Thursday. Ahead of the mid-tier macroeconomic data releases from the US, the DXY is posting modest daily losses near 91.00.
Later in the day, the US Department of Labor will release its weekly Initial Jobless Claims data. Other data from the US will include the IHS Markit and the ISM’s Services PMI figures and November Challenger Job Cuts.
Technical levels to watch for
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