- The NZD / USD is experiencing a modest recovery on Thursday.
- The US Dollar Index consolidates Wednesday’s gains around 90.30.
- Investors await speeches from Powell and Biden.
The NZD / USD lost more than 30 pips on Wednesday, as the dollar recovered. On Thursday it is rising modestly, and has been trading around 0.7200 for hours, without moving away from that level.
DXY in consolidation mode
Investors seem unwilling to make any more bullish bets against the dollar in the run-up to two major speeches. In the American afternoon, FOMC President Jerome Powell will give a speech. In addition, President-elect Joe Biden will present details of his economic plan, which includes the proposal for new stimuli. Biden’s proposal and / or Powell’s guidelines may have an impact on the dollar, and therefore on the NZD / USD.
Prior to this, the economic calendar shows that the weekly report of requests for unemployment benefits in the US will be published.
From a technical point of view, in the very short term the NZD / USD is in consolidation mode. The first resistance looms at 0.7210 and then at 0.7240. In the opposite direction, at 0.7170 / 75, there is a bullish line that if broken could lead the pair to test the weekly lows.