- The NZD / USD remains under heavy bearish pressure on Friday.
- Aggressive comments from the Fed provide a boost to the USD early in the US session.
- The US dollar index rose to fresh multi-month highs above 92.00.
The pair NZD / USD it lost more than 100 pips in the previous two days and struggled to pull off a convincing bounce on Friday. After breaking below 0.7000, the pair extended its decline and touched its weakest level since late March at 0.6949. At time of writing, NZD / USD was down 0.53% on the day at 0.6960.
Aggressive Fed Comments Fuel DXY Rally
The broad-based USD strength weighed heavily on the NZD / USD in the second half of the week and the kiwi failed to capitalize on New Zealand’s stronger than expected GDP growth figure. With the US Dollar Index (DXY) retaining its bullish momentum ahead of the weekend, the NZD / USD remains on the defensive.
In an interview with CNBC on Friday, St. Louis Fed Chairman James Bullard acknowledged that the June FOMC meeting represented a somewhat aggressive move. Bullard also noted that inflation is more intense than expected. Supported by these comments, the DXY advanced to its highest level in more than two months and was last seen gaining 0.26% to 92.13.
No data will be released on the US economic calendar on Friday and NZD / USD is unlikely to change direction and stay on track to post its lowest weekly close of 2021.
Technical levels
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