- The NZD / USD is posting strong daily gains on Friday.
- The US Dollar Index remains in negative territory below 92.50.
- The major Wall Street indices are still on track to open into positive territory.
After the sharp decline observed at the beginning of the week, the pair NZD / USD It fluctuated in a very tight range over the past two days, but made a decisive bounce on Friday. At time of writing, the pair was up 0.63% on the day at 0.7146.
With all eyes on the US PPI data, Wall Street
Hours earlier, data from New Zealand revealed that e-card sales contracted 19.8% monthly in August. This reading disappointed market expectations of a 1.7% increase. Despite the disappointing data, the observed positive shift in market sentiment helped the NZD find demand. Reflecting market optimism, US stock index futures were up 0.4% to 0.5% on the day.
On the other hand, the modest selling pressure surrounding the dollar is also helping the NZD / USD to preserve its bullish momentum. After a three-day rally, the US Dollar Index (DXY) fell 0.2% on Thursday and was last seen shedding 0.08% to 92.46.
Later in the session, August Producer Price Index (PPI) data will be included on the US economic agenda Should the major Wall Street indices rise after the opening bell, it is likely that risk flows make it difficult for DXY to recoup its losses.
Technical levels
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