NZD/USD extends gains, targets 0.67 ahead of US inflation data
- Greenback struggles to find demand after FOMC Chairman Powell's remarks.
- US Dollar Index slumps below 97 handle on Thursday.
- Coming up: Inflation data from the US, Business NZ PMI from New Zealand.
After adding more than 40 pips on Wednesday, the NZD/USD pair extended its rebound from the multi-week lows that it set at 0.6568 yesterday and reached a weekly high of 0.6678. As of writing, the pair was up 0.42% on the day at 0.6674.
FOMC Chairman Powell's cautious remarks yesterday revived hopes of the Fed making a sharp U-turn in its policy outlook and weighed on the greenback. The US Dollar Index, which rose to its highest level in three weeks at 97.60 earlier this week, broke below the 97 mark.
Ahead of the Consumer Price Index (CPI) data from the U.S., which is expected to edge down to 1.6% on a yearly basis in June from 1.8% in May, the DXY is down 0.2% on the day at 96.88. Later in the day, Chairman Powell will speak again in the second day of his semi-annual testimony before the Congress.
In the early trading hours of the Asian session, Business NZ PMI data from New Zealand and Chinese trade balance data will be looked upon for fresh impetus.
Key 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.
