NZD/USD goes into consolidation after renewing multi-month highs above 0.6590
|- NZD/USD loses bullish momentum before reaching 0.6600 on Thursday.
- Business confidence in New Zealand recovered slightly in July.
- US Dollar Index stays around mid-96s ahead of Jobless Claims data.
The NZD/USD pair continued to edge higher during the Asian session on Thursday and touched its highest level since late January at 0.6593. However, the pair struggled to preserve its momentum amid a lack of significant macroeconomic data releases and started to consolidate its gains. As of writing, NZD/USD was up 0.08% on the day at 0.6580.
NZD capitalizes on upbeat data, risk-on mood
Earlier in the day, the data published by the ANZ showed that the Business Confidence in New Zealand improved from -34.4 to -29.8 in July. Moreover, the positive market environment on heightened hopes surrounding a coronavirus vaccine provided a boost to risk-sensitive NZD.
On the other hand, the greenback stays on the back foot against its rivals with the US Dollar Index struggling to pull away from the multi-week low it set at 96.24 on Thursday. Later in the session, the US Department of Labor will publish its weekly Initial Jobless Claims data, which is expected to show that 1.37 million American applied for unemployment insurance last week.
In the early trading hours of the Asian session on Friday, Electronic Card Retail Sales data from New Zealand will be featured in the economic docket.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.