- The NZD / USD is moving within a tight range after Thursday’s slide.
- The DXY US Dollar Index is stable just below 92.00.
- No major macroeconomic data will be released on the US economic calendar.
The pair NZD / USD it fell sharply on Thursday and returned all the gains it had posted on Wednesday. In the absence of significant fundamental drivers on the final day of the week, the pair appears to be having a difficult time making a decisive move in either direction. At the time of writing, the pair remains virtually unchanged on the day near the 0.7170 level.
On Thursday, a sharp rally seen in US Treasury yields gave a boost to the dollar. The DXY US Dollar Index rose nearly 0.5% as the benchmark 10-year US Treasury yield posted an impressive 4.4% daily gain. Before the weekend the DXY index is moving sideways around 91.90, not allowing the NZD / USD to bounce.
The focus is on the talks between the United States and China
In the meantime, the latest news on the US-China talks in Alaska point to increased geopolitical tensions between two superpowers.
Chinese Foreign Ministry spokesman Zhao Lijian noted that there was a lot of confrontation between the two parties and the Wall Street Journal reported on Friday that China has increased oil purchases from Iran and Venezuela. If tensions continue to rise, the NZD could start to weaken against other currencies in the coming days.
The US economic calendar will not present any significant macro data releases for the remainder of the day and bond markets remain relatively quiet, suggesting that the NZD / USD could extend its sideways movement for the remainder of the day.
NZD / USD technical levels
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