- The NZD / USD fell to a daily low of 0.7132 on Wednesday.
- The US dollar index remains in a consolidation phase below 94.00.
Investors await durable goods orders and US trade balance data.
The pair NZD / USD it came under modest downward pressure early in the European session on Wednesday and fell to a daily low of 0.7132 before rebounding. At time of writing, the pair was down 0.2% on the day at 0.7155.
Focus shifts to US data, Wall Street
Data from New Zealand showed that ANZ business confidence fell to -13.4 in October from -8.6 in September. Additionally, Statistics New Zealand reported that the trade deficit continued to increase in September.
In addition to the disappointing data releases, the observed negative shift in market sentiment made it difficult for the risk-sensitive NZD to find demand. Furthermore, the growing geopolitical tensions between the US and China appear to have an impact on the pair’s action.
On the other hand, the US dollar index remains in a consolidation phase modestly below 94.00 on Thursday. The 1% drop seen in the benchmark 10-year US Treasury yield appears to be limiting the dollar’s gains.
Macroeconomic data showed that the durable goods orders report for September showed mixed data. The main indicator registered a drop of 0.8%, which was less than the 1.1% expected by the market. Meanwhile, US stock index futures are trading in negative territory, suggesting that safe-haven flows could start to dominate financial markets in the second half of the day.
Technical levels
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