- The NZD / USD turned south after closing in positive territory on Thursday.
- The US dollar index posted modest gains near 93.20.
- FOMC President Jerome Powell is scheduled to deliver a speech at 14:00 GMT.
The risk-positive market environment and widespread USD weakness helped the pair NZD / USD to close in positive territory on Thursday. However, the pair lost traction on Friday and was last seen trading at a fresh session low of 0.7040, shedding 0.35% on the day.
Focus shifts to Powell speech and Fed statements
The cautious mood of the market ahead of the weekend appears to be helping the dollar to remain resilient against its rivals. The US Dollar Index (DXY), which lost 0.38% on Thursday, posted modest daily gains at 93.17. Meanwhile, S&P futures and Nasdaq futures are down 0.35% and 0.5%, respectively, suggesting that the DXY is likely to rally higher should the major Wall Street indices hold down. defensive after the opening bell.
Earlier in the day, New Zealand data showed that the trade deficit narrowed in August, but it did not help the NZD find demand.
There will be no high-level macroeconomic data releases on the US economic agenda for the remainder of the day, but market participants will closely follow FOMC Chairman Jerome Powell’s speech at the Fed Listens event at 2 p.m. : 00 GMT. Federal Reserve Vice Chairman Richard Clarida and Federal Reserve Governor Michelle Bowman will also speak after Powell’s opening remarks.
Technical levels
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