NZD/USD stays calm near 0.6650 ahead of key data from US
|- Upbeat trade balance data from New Zealand help kiwi gather strength.
- US Dollar Index stays flat on the day above 98.
The NZ/DUSD pair gained traction in the Asian session and extended its recovery that started after the pair fell to its lowest level since the flash crash witnessed on January 2nd at 0.6580 on Thursday. As of writing, the pair is up 0.42% on the day at 0.6654.
The data published by the Statistics New Zealand showed that the country posted a trade surplus of $922 million in March with a strong increase in exports following February's $68 million deficit and beat analysts estimate of +$131 million by a wide margin to provide a boost to the kiwi. Further details of the report revealed that the annual trade deficit narrowed to $5.62 billion in the same period.
On the other hand, the US Dollar Index is staying quiet above the 98 mark following the impressive rally witnessed during the first half of the day as investors are staying on the sidelines before the U.S. Bureau of Economic Analysis publishes its first estimate of Q1 GDP growth.
Previewing the data, "Our economists expect a +2.6% qoq/saar reading which is above the market consensus of +2.3%. For what it’s worth the range of expectations for that consensus reading is from as low as +1.0% to as high at +2.9%, with the Atlanta Fed’s tracker at +2.7%. A reminder that Q4 came in at +2.2%,” Deutsche Bank analysts said.
Additionally, the University of Michigan will announce the final April Consumer Confidence Index.
Technical levels to consider
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.