- The NZD / USD is posting gains for the third day in a row.
- The US dollar index struggles to gain traction after upbeat US data.
- The bullish market sentiment is helping the NZD / USD to stay bullish.
The pair NZD / USD it rose to its highest level in nearly four weeks at 0.7181 during European trading hours on Thursday and made a technical correction before regaining its traction. At time of writing, the pair was up 0.45% on the day at 0.7170.
USD fails to capitalize on solid data
Although the release of US macroeconomic data confirmed the strong economic rebound, the dollar struggled to gain strength amid the sharp drop in US Treasury yields.
The US Department of Labor reported Thursday that weekly Initial Unemployment Claims fell to their lowest level in a year at 576,000. Additionally, the monthly release from the U.S. Census Bureau revealed that Retail Sales, which contracted 2.7% in February, increased 9.8% in March, beating the market’s expectation of an increase of 5, 9%. With the initial reaction, the US Dollar Index advanced to a daily high of 91.73, but reversed its direction to turn flat around 91.65 in the last hour.
Meanwhile, the observed positive shift in risk sentiment, as reflected in the impressive gains in the major Wall Street indices, is helping the NZD / USD preserve its bullish momentum.
On Friday, New Zealand’s Business NZ PMI data will be analyzed for fresh momentum.
Technical levels
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