NZD/USD extends daily slide, trades below 0.6550
- NZD/USD continues to push lower in early American session.
- US Dollar Index rose to a fresh two-month high above 94.70.
- Durable Goods Orders in US increased at a softer pace than expected in August.
The NZD/USD pair met a fresh bearish wave in the early American session and dropped to a daily low of 0.6528. As of writing, the pair was down 0.1% on a daily basis at 0.6543.
DXY extends rally into the weekend
The data published by the US Census Bureau showed on Friday that Durable Goods Orders in August rose by 0.4% and missed the market expectation for an increase of 1.5%.
Commenting on the underlying details of the report, “nondefense capex shipments jumped 3.3% in August," said Wells Fargo analysts. "Through the first two months of Q3, the series is up at a 33% annualized rate and signals equipment spending will be a key contributor to the third quarter’s bounce back in GDP.”
Nevertheless, the US Dollar Index (DXY) largely ignored this data and preserved its bullish momentum to touch its highest level in two months at 94.74. At the moment, the DXY is up 0.35% on the day at 94.66.
Meanwhile, Wall Street's main indexes turned green after starting the day in the negative territory and helped risk-sensitive kiwi show some resilience against the USD.
There won't be any other macroeconomic data releases in the remainder of the day and the USD's market valuation is likely to continue to impact NZD/USD's movements.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
