NZD/USD drops to session lows below 0.7050 ahead of Fedspeak
|- NZD/USD turned south after closing in the positive territory on Thursday.
- US Dollar Index posts modest gains near 93.20.
- FOMC Chairman Jerome Powell is scheduled to deliver a speech at 1400 GMT.
The risk-positive market environment and the broad-based USD weakness helped the NZD/USD pair close in the positive territory on Thursday. However, the pair lost its traction on Friday and was last seen trading at a fresh session low of 0.7040, losing 0.35% on the day.
Focus shifts to Powell speech at Fed Listens
The cautious market mood ahead of the weekend seems to be helping the greenback stay resilient against its rivals. The US Dollar Index (DXY), which lost 0.38% on Thursday, is posting modest daily gains at 93.17. In the meantime, the S&P Futures and Nasdaq Futures are down 0.35% and 0.5%, respectively, suggesting that the DXY is likely to edge higher in case Wall Street's main indexes remain on the back foot after the opening bell.
Earlier in the day, the data from New Zealand showed that that the trade deficit narrowed in August but failed to help the NZD find demand.
There won't be any high-tier macroeconomic data releases featured in the US economic docket in the remainder of the day but FOMC Chairman Jerome Powell's speech at the Fed Listens event at 1400 GMT will be watched closely by market participants. Federal Reserve Vice Chair Richard Clarida and Federal Reserve Governor Michelle Bowman will also be speaking following Powell's opening remarks.
Technical levels to watch for
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