NZD / USD is holding on to modest daily gains in the latest US session.
The US dollar index is struggling for a significant rally.
The risk averse market environment makes it difficult for NZD to gain more traction.
The NZD / USD pair advanced to a fresh daily high of 0.72222 in the US session, and struggled to preserve its bullish momentum. At time of writing, the pair was up 0.33% on the day to 0.7212 and is on track to break a two-day losing streak.
The USD remains on the defensive
Earlier in the day, the widespread selling pressure surrounding the USD helped the NZD / USD climb. The US Dollar Index (DXY) fell to a daily low of 90.55 after data released by the US Department of Labor showed that initial weekly jobless claims rose to 861,000, compared to the estimate. of 765,000 analysts.
However, the sharp drop seen in major US equity indices after the opening bell helped the dollar find demand and limited the NZD / USD gains. At the moment, the S&P 500 is losing 0.55% and the DXY is down 0.35% to 90.62.
Other US data revealed that the Philadelphia Fed Manufacturing Index fell to 23.1 in February, but was better than the market’s expectation of 20. Finally, homebuilding in January declined 6% but permits were down 6%. construction increased 10.4%.
On Friday, the New Zealand Producer Price Index (PPI) will be released. Later in the day IHS Markit will release preliminary US Manufacturing and Services PMI reports However, USD market valuation is likely to remain the main driver of NZD / USD moves ahead of the end. of week.
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