- US Dollar Index recovers above 94.50 in the NA session.
- 10-year T-bond yield advances to 3% for the first time since early August.
- Today's data from the U.S. support the greenback.
The NZD/USD pair lost its traction in the second half of the day on Friday and fell to a fresh session low of 0.6558. As of writing, the pair was trading at 0.6562, losing 0.12% on the day.
The pair's recent fall seems to be the product of a stronger greenback. The Univesity of Michigan's Consumer Confidence Index rose to 100.8 from 96.2 in the previous estimate. In the report, the UoM further revealed that the Expectations Index reached its highest level in more than 14 years. Furthermore, the monthly report published by the Fed showed that industrial production expanded by 0.4% on a monthly basis in August to surpass the market consensus of 0.3%. On a negative note, retails sales in August rose 0.1% to fall short of the analysts' estimate of 0.4%.
Meanwhile, the 10-year US T-bond yield advanced to 3% for the first time since August 3 to provide an additional boost to the dollar. At the moment, the US Dollar Index is up 0.3% on the day at 94.82.
Despite today's fall, the pair remains on track to record weekly gains after falling in the previous two weeks.
Technical levels to consider
The pair could face the first support at 0.6500 (psychological level/Sep. 12 low) ahead of 0.6460 (Feb. 2, 2016, low) and 0.6380 (Jan. 15, 2016, low). On the upside, resistances align at 0.6600 (daily high/psychological level), 0.6670 (50-DMA) and 0.6730 (Aug. 28 high).
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 securities. 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 Forex 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.