- Industrial production in China expanded at a more robust pace than expected in September.
- US Dollar Index continues to move sideways near the 97.50 mark.
- NZD/USD remains on track to post gains for the fourth straight week.
The NZD/USD pair built on Thursday’s gains and climbed to its highest level since mid-September at 0.6377 on Friday. As of writing, the pair was trading at 0.6370, adding 0.4% on a daily basis. Unless the pair makes a sharp U-turn and erases more than 50 pips in the remainder of the day, it will close the week in the positive territory for the fourth straight week.
Chinese data help antipodeans
Earlier in the day, the data from China showed that the Chinese economy expanded by 1.5% on a quarterly basis in the third quarter to match the market consensus. Additionally, industrial production in China in September rose by 5.8% on a yearly basis following August’s reading of 4.4% and beat analysts’ estimate of 5% to provide a boost to antipodeans.
On the other hand, the selling pressure surrounding the Greenback remained intact on Friday and helped the pair stretch higher. The upbeat market sentiment dampened the demand for the USD throughout the week and the disappointing macroeconomic data releases from the US put additional weight on the currency’s shoulders.
Ahead of Kansas City Fed President Esther George, Dallas Fed President Robert Kaplan, and Federal Reserve Vice-Chair Richard Clarida’s speeches later in the session, the US Dollar Index is at its lowest level since August 23 at 97.47, losing 0.1% and 0.9% on a daily and weekly basis, respectively.
Technical levels to watch for
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