- The NZD / USD is fluctuating within a narrow range below 0.7100 on Thursday.
- The US Dollar DXY Index remains under modest bearish pressure around 91.00.
- The focus is on PMI data for services and initial US jobless claims.
After climbing to its highest level since April 2018 at 0.7085 on Wednesday, the NZD / USD pair appears to have entered a consolidation phase. At time of writing, the pair is up 0.13% on the day at 0.7070.
USD Selling Limits NZD / USD Fall
The only data from New Zealand on Thursday showed that the ANZ Commodity Price Index in November rose 0.9%, but it was largely ignored by market participants.
Meanwhile, risk aversion market sentiment makes it difficult for the NZD to gain traction against its rivals. At the moment, major European stock indices are trading in negative territory and S&P 500 futures are down 0.15%, suggesting risky money flows are struggling to regain control of financial markets.
On the other hand, the general weakness of the USD is helping the NZD / USD to keep its losses limited. The US Dollar DXY Index has lost nearly 1% in the past two days and hit its lowest level in more than 30 months at 90.83 on Thursday. Ahead of the release of mid-level US macroeconomic data, the DXY index posted modest daily losses near 91.00.
Later in the day, the US Department of Labor will release its weekly data on initial jobless claims. Other data from Americans will include IHS Markit and ISM services PMI figures and Challenger job cuts for November.
NZD / USD technical levels
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