- The NZD / USD is rising modestly ahead of the US data release.
- The US Dollar DXY Index remains relatively quiet around 91.00.
- CPI data and weekly initial jobless claims stand out on the US economic calendar.
After climbing towards 0.7100 on Wednesday, the NZD / USD reversed its direction during the American session and closed the day in negative territory at 0.7019. However, the pair is experiencing a rebound ahead of the release of key US macroeconomic data. At the time of writing, the pair is gaining 0.28% on the day, trading at 0.7044.
DXY Index Loses Recovery Momentum
The negative change seen in risk appetite on Wednesday helped the US dollar gain strength in the second half of the day. The renewed concerns that U.S. lawmakers will fail to reach an agreement on the aid bill the coronavirus before the end of the year and the lack of progress in trade talks between the EU and the United Kingdom caused investors to start seeking refuge. The US Dollar DXY Index closed above the 91.00 level after falling to 90.70 earlier in the day.
Thursday, The DXY index is moving sideways within a narrow range around the 91.00 region. Later in the day, the focus will turn to data from the CPI consumer price index and weekly initial jobless claims from the US Department of Labor Markets expect the annual core CPI to remain unchanged at 1.6% in November and a higher than expected figure could provide a boost to the USD.
Meanwhile, investors will also keep a close eye on Wall Street’s performance. At the moment, S&P 500 futures are posting small daily gains. A rally in US equities could weigh on the USD.
NZD / USD technical levels
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