NZD/USD remains on track to end week above 0.6500
- NZD/USD pair is rising for the fourth straight day on Friday.
- Upbeat PMI data from China helped kiwi gather strength.
- US Dollar Index posts modest gains in quiet day.
The NZD/USD pair preserved its bullish momentum on Friday and rose to a daily high of 0.6532. However, the pair has already gone into a consolidation phase amid thin trading conditions.
NZD/USD extends winning streak
As of writing, NZD/USD was up 0.26% on the day at 0.6527. On a weekly basis, the pair, which looks to post its fourth straight positive daily close, is up more than 100 pips.
During the Asian session, the data from China showed that the business activity in the service sector expanded at a robust pace with the Caixin Services PMI climbing to 58.4 from 55.5.
Although the China-proxy NZD capitalized on this data and gathered strength against the USD, the dismal market mood made it difficult for NZD/USD to stretch higher. In the absence of significant market drivers, investors remain cautious amid rising COVID-19 cases in the US.
The risk-off environment, as reflected by the sharp drop witnessed in major European equity indexes, is helping the greenback find demand. At the moment, the US Dollar Index is up 0.1% on the day at 97.30. There won't be any macroeconomic data releases from the US and the market action is expected to remain subdued due to the Independence Day holiday in the US.
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.
