- The NZD / USD turned south after closing in positive territory for three days.
- The US Dollar Index is approaching 92.00 on Friday.
- Eye on PPI and US Consumer Confidence Data
The pair NZD / USD it posted impressive gains in the previous three trading days and rose to 0.7242 before reversing its direction on Friday. At time of writing, the pair was down 0.7% to 0.7175.
USD capitalizes on rising Treasury yields
The USD market valuation continues to drive the NZD / USD moves ahead of the weekend. Pressed by falling US Treasury yields, the US Dollar Index (DXY) fell sharply, hitting a weekly low of 91.36 on Thursday. However, the sharp rally seen in the benchmark 10-year US Treasury yield, which rose 4.44% at press time, on Friday is helping the dollar outperform its rivals. At press time, the DXY was up 0.53% to 91.90.
Earlier in the day, New Zealand data revealed that Business NZ’s PMI fell to 53.4 in February from 58 in January, but this reading beat the market’s expectation of 49.8. However, investors paid little or no attention to this report.
Later in the day, the US University of Michigan Producer Price Index (PPI) and Consumer Sentiment Index data will be revised for further momentum.
Meanwhile, S&P 500 futures were down 0.6% on the day, suggesting risk appetite is likely to continue to support the dollar in the second half of the day.
Technical levels
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