- The NZD / USD is struggling to find direction on Friday.
- The US Dollar Index hovers near 93.00 as investors await Powell’s speech.
- PCE core inflation in the US is expected to rise to 3.6% from 3.5%.
The USD’s renewed strength following aggressive comments from the Fed on Thursday caused the pair to NZD / USD broke its three-day winning streak and closed in negative territory near 0.6950. As investors stay on the sidelines ahead of the long-awaited Jackson Hole Symposium, the pair is moving sideways on Friday.
The calm before the storm
Prior to FOMC Chairman Powell’s speech at 14:00 GMT, the US Bureau of Economic Analysis will release data from the Personal Consumption Expenditure (PCE) price index. On an annual basis, core PCE inflation in the US is expected to rise to 3.6% in July from 3.5% in June. However, market reaction to this report is likely to remain muted as market participants seek new clues about the Fed’s gradual downsizing outlook.
Data on personal income, personal spending, and the University of Michigan Consumer Sentiment Index will also be included in the US economic agenda.
Meanwhile, the US Dollar Index is moving sideways around 93.00, reflecting the negativity of market participants to take large positions.
Hours earlier, New Zealand data revealed that Roy Morgan’s Consumer Confidence Index fell to 109.6 in August from 113.1 in July, but this figure was largely ignored by investors.
Technical levels
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