NZD/USD loses traction before reaching 0.6700, turns flat near 0.6660
- NZD/USD seems to be struggling to stay bullish on Thursday.
- US Dollar Index continues to fluctuate below 95.00.
- Weekly Initial Jobless Claims will be featured in US economic docket.
The NZD/USD pair moved sideways near mid-0.6600s during the Asian session on Thursday but started to push higher after major European stocks started the day in the positive territory. However, the pair lost its traction before reaching 0.6700 and pared its gains to turn flat at 0.6660.
Eyes on US data, Wall Street
In the absence of significant fundamental drivers, NZD/USD is having a difficult time making a decisive move in either direction. Additionally, the pair seems to have turned technically overbought in the near-term, suggesting that the pair could stage a correction before the next leg up.
The US economic docket on Thursday will feature the weekly Initial Jobless Claims data and the Federal Reserve Bank of Kansas' Manufacturing Index. Ahead of these data, the US Dollar Index, which posted its lowest daily close since October 2018 at 94.95, is posting small daily losses near 94.90.
Meanwhile, the S&P 500 futures are up 0.3% on the day, suggesting that Wall Street could open in the positive territory. If risk flows start to dominate the market in the second half of the day, the USD could struggle to find demand and allow NZD/USD to, once again, target 0.6700.
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.
