NZD/USD pares early losses, turns flat near 0.6630
|- NZD/USD is fluctuating above 0.6600 ahead of American session.
- US Dollar Index is consolidating Thursday's gains below 94.00.
- Focus shifts to Personal Income and inflation data from US.
After dropping below 0.6600 for the first time in more than a week on Thursday, the NZD/USD pair staged a rebound during the Asian trading hours but failed to gather bullish momentum. Although the pair retreated toward 0.6600 in the early European session, the renewed USD weakness helped it return to 0.6630 area, where it was flat on the day.
Earlier in the day, the data from New Zealand revealed that the ANZ Activity Outlook in October improved to 4.7% from 3.6% in September and beat the market expectation of 3.6%. On a negative note, however, the ANZ Business Confidence slumped to -15.7 from -14.5.
Eyes on US data
The US Dollar Index (DXY), which climbed to its highest level in a month at 94.10 on Thursday, seems to have gone into a consolidation phase ahead of key macroeconomic data releases from the US. As of writing, the DXY was down 0.04% on the day at 93.89.
The US Bureau of Economic Analysis will release the Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred gauge of inflation, alongside Personal Income and Personal Spending data. Later in the session, the University of Michigan's Consumer Sentiment Index will be featured in the economic docket as well.
Meanwhile, the S&P 500 futures are down 0.8% on a daily basis and a sharp decline in Wall Street's main indexes could provide a boost to the USD toward the end of the week and cause the pair to turn south in the second half of the day.
Technical levels to watch for
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