NZD/USD pares early gains, turns flat near 0.7060 ahead of US data
|- NZD/USD touched its highest level since May 2018 at 0.7085.
- US Dollar Index recovers modestly, stays below 91.50.
- Investors await mid-tier macroeconomic data releases from the US.
The NZD/USD pair climbed to its highest level since May 2018 at 0.7085 on Wednesday but seems to have gone into a consolidation phase ahead of mid-tier macroeconomic data releases. As of writing, the pair was virtually unchanged on the day at 0.7063.
DXY finds support before testing 91.00
The broad-based selling pressure surrounding the greenback since the start of the week provided a boost to NZD/USD. The risk-on market environment, as reflected by surging equity indexes in the US, made it difficult for the USD to find demand. The US Dollar Index (DXY) slumped to its lowest level in 30 months at 91.10 on Wednesday and staged a technical rebound. At the moment, the DXY is up 0.05% on the day at 91.36.
Earlier in the day, Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said that they are focused on being operationally ready to implement negative rates if necessary and kept kiwi's upside limited.
Later in the session, the ADP Employment Change and the ISM-NY Business Conditions Index will be featured in the US economic docket.
Meanwhile, the S&P 500 Futures are down 0.2% on the day, suggesting that the DXY could edge higher in the second half of the day if Wall Street's main indexes push lower.
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.