NZD / USD rises above 0.7200 as focus shifts to US PMI data.

  • The NZD / USD is rising for the second day in a row on Friday.
  • The US Dollar Index remains below 90.00 ahead of US PMI data.
  • The major Wall Street indices are looking to build on Thursday’s gains.

The pair NZD / USD it posted modest gains on Thursday and continued to rise on Friday. At time of writing, the pair gained 0.18 on the day at 0.7215.

Investors await US PMI data.

The USD market valuation remains the main driver of the NZD / USD moves ahead of the weekend. Following Wednesday’s rebound from tough FOMC Minutes, the US Dollar Index (DXY) struggled to preserve its bullish momentum and closed in negative territory on Thursday. Currently, the DXY changed little on the day at 89.77.

In the absence of major fundamentals, the risk-positive market environment appears to be weighing on the USD. At the moment, S&P futures and Nasdaq futures are up around 0.4%, suggesting that the dollar will find it difficult to find demand in the second half of the day.

Later in the session, IHS Markit will release preliminary May Manufacturing and Services PMI reports for the US Investors expect these reports to show that business activity in the private sector continued to expand at a solid pace.

Meanwhile, the benchmark 10-year US Treasury yield remains flat on the day at 1.625%, helping the USD limit its losses for the time being.

Technical levels

.

You may also like