Home Markets NZD / USD clings to modest daily gains around 0.7040

NZD / USD clings to modest daily gains around 0.7040

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NZD / USD clings to modest daily gains around 0.7040
  • The NZD / USD registers a modest rally after Wednesday’s slide.
  • The US Dollar DXY Index remains relatively quiet below 92.50.
  • The focus shifts to mid-level US data and FOMC Chairman Jerome Powell’s speech.

The pair NZD / USD It has moved slightly lower during the Asian session on Thursday, but managed to change direction during the European session. At the time of writing, the pair remains close to daily highs around 0.7040 level.

Earlier in the day, New Zealand data has shown that the ANZ business confidence index in April fell to -8.4 points and did not meet the market expectation of -6.5. In addition, the ANZ’s activity outlook index declined to 16.4% from 16.6% seen in March, making it difficult for the NZD to gain strength.

DXY Index struggles to capitalize on Wednesday’s gains

However, the USD market valuation remains the main driver of the NZD / USD price action. With the 10-year US Treasury yield shedding more than 1% on Thursday, the US dollar DXY index posted small losses at 92.37 and underpinned the rally in the NZD / USD.

At the beginning of the American session, the weekly report on initial jobless claims Most importantly, the president of the FOMC, Jerome Powell, will deliver a speech at 16:00 GMT. Minutes from the FOMC’s March meeting offered no surprises regarding the short-term policy outlook on Wednesday.

In evaluating the publication, “the minutes were generally as moderate as expected, noting that labor market conditions for ‘people from the most disadvantaged communities were considered lagging behind’ and, as a result, ‘the economy was far behind. to achieve the FOMC’s broad and inclusive goal of maximum employment, “said analysts at Capital Economics.

NZD / USD technical levels

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