- The NZD / USD extends its daily rally at the beginning of the US session.
- The US dollar index declines as US stocks trade green.
- The United States trade deficit widened to $ 84.82 billion in November.
The pair NZD / USD It gained traction during the first trading hours of the US session and advanced to its highest level since April 2018 at 0.7209. At time of writing, the pair was trading at 0.7204, up 0.8% daily.
USD selloff continues on Wednesday
The selling pressure surrounding the dollar remains intact in the second half of the day with the major stock indices in the US starting the day on a firm footing. At the moment, the Dow Jones Industrial Average is up 0.55% on the day and the US Dollar Index is losing 0.4% to 89.64.
Hours earlier, the United States Census Bureau reported that the trade deficit in November increased by $ 4.4 billion to $ 84.8 billion. Other US data revealed that pending home sales declined 2.6% in November. However, these disappointing numbers were largely ignored by market participants and sentiment remains bullish in the new year.
On Thursday, China’s official manufacturing and non-manufacturing PMI data will be analyzed for further momentum. The market expectation is that both sectors continue to expand in December and China’s proxy kiwi could retain its strength on solid readings.
Technical levels
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