- The NZD / USD is still on track to post strong weekly gains.
- The US Dollar Index remains in negative territory on Friday.
- The major Wall Street indices appear to be opening modestly higher.
The pair NZD / USD it advanced to its highest level in more than three weeks at 0.7182 on Thursday and appears to have entered a consolidation phase ahead of the weekend. At time of writing, the pair was unchanged daily at 0.7168. During the week, the NZD / USD has risen around 150 pips.
Hours earlier, New Zealand data revealed that New Zealand’s business PMI improved to 63.6 in March from 53.4 in February, showing expansion in private sector business activity at a solid pace. This reading came out better than the market expectation of 51.4, but was largely ignored by market participants.
DXY struggles to gain traction
On the other hand, the dollar continues to struggle to find demand on Friday. On Thursday, bullish macroeconomic data released in the US gave a boost to market sentiment and put the US dollar under strong selling pressure. The US dollar index fell to its lowest level since March at 91.49 and failed to make a significant rally on Friday, with the yield on 10-year US Treasuries shedding more than 1% on the day.
Later in the session, data from the University of Michigan Consumer Sentiment Index, Housing Initiatives and Building Permits will be included in the US economic agenda.
Meanwhile, S&P 500 futures are up 0.15% on the day, suggesting that the USD could lag behind if risk flows continue to control financial markets.
Technical levels
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