- The NZD / USD lost its traction before hitting 0.7100 on Friday.
- The US Dollar Index consolidates Thursday’s rally below 93.00.
- Focus shifts to September MU consumer confidence index data.
The pair NZD / USD It fell to its lowest level in 16 days at 0.7063 on Thursday and recorded a modest recovery in the first half of the day on Friday. However, the pair lost its momentum before hitting 0.7100 and erased a large part of its daily gains. At time of writing, the pair was up 0.1% to 0.7070.
DXY remains calm below 93.00
The renewed strength of the USD in the second half of the week forced the NZD / USD to remain under strong downward pressure. Fueled by the strong retail sales report for August and rising US Treasury yields, the US Dollar Index (DXY) advanced to its strongest level since late August at 92.96 on Thursday earlier. to enter a consolidation phase.
Ahead of preliminary data from the University of Michigan’s September Consumer Sentiment Index, the DXY posted small daily losses at 92.80.
Hours earlier, New Zealand data showed Business NZ’s PMI fell to 40.1 in August from 62.6 in July, but this disappointing figure was largely ignored by market participants.
Meanwhile, the major Wall Street indices are still on track to open little changed on Friday, suggesting that risk sentiment may not provide a directional clue for NZD / USD ahead of the weekend.