NZD / USD rises towards 0.7200 with its sights set on the Wall Street open and US data.

• The NZD / USD posted modest daily gains on Friday.
• The US Dollar Index remains quiet near 90.50 after Thursday’s decline.
• Investors expect US inflation, personal income and personal spending data.

After the sharp fall on Wednesday, the pair NZD / USD it extended its slide to a new weekly low of 0.7104 on Thursday, but made a decisive rally during the US session to close modestly higher at 0.7170. Although the pair fluctuated in a tight range during the first half of the day on Friday, it gained traction in the last hour and was last seen gaining 0.33% daily in 0.7194.

DXY Turns South As US Equity Futures Rebound

The sharp rally seen in major Wall Street indices after several brokerage firms restricted trading in the volatile GameStop and AMC Entertainment Holdings Inc on Thursday weighed on the dollar and helped the NZD / USD rise. The index of US dollar (DXY) it lost 0.21% and appears to be struggling to gain traction on Friday. With S&P 500 futures, which lost as much as 1% during the European session, bouncing before the opening bell, the DXY fell back below 90.50.

Later in the session, the US Bureau of Economic Analysis will release the Personal Consumption Spending (PCE) Price Index, the Fed’s preferred indicator of inflation, along with Personal Income and Spending figures. Pending Home Sales and the University of Michigan Consumer Sentiment Index will also be included in the US economic calendar.

Earlier in the day, data from New Zealand showed that the Roy Morgan consumer confidence index improved to 113.8 in January from 112 points in December, but this reading was largely ignored by market participants.

Technical levels