NZD/USD extends sideways grind above 0.6400
|- NZD/USD goes into consolidation above 0.6400 following an impressive rally.
- US Dollar Index rebounds modestly toward 97.50 on Thursday.
- Weekly Jobless Claims data and Trade Balance figures will be featured in US economic docket.
The NZD/USD pair closed the first three days of the week in the positive territory and gained around 200 pips during that period. With the market action turning subdued on Thursday, the pair has gone into a consolidation phase and was last seen trading flat on the day near 0.6420.
The only data from New Zealand on Thursday showed that the ANZ Commodity Price Index came in at -0.1% in May. Although this reading beat the market expectation of -1.6%, it was largely ignored by the market participants.
DXY rebounds ahead of mid-tier US data
Meanwhile, the US Dollar Index (DXY), which slumped to its lowest level in more than two months at 97.19 on Wednesday, is posting modest gains near 97.50. The uninspiring performance of global equity indexes seems to be helping the greenback find demand as a safer alternative.
In the second half of the day, the Department of Labor's (DOL) weekly Initial Jobless Claims, Trade Balance and Unit Labor Costs will be featured in the US economic docket. Markets expect the DOL report to show that 1.8 million Americans applied for unemployment benefits in the week ending May 29th. A better-than-expected reading could help the sentiment turn positive and weigh on the USD.
Technical levels to watch for
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