NZD/USD remains steady around 0.7000 as USD weakness limits downside
- NZD/USD is moving sideways around 0.7000 on Friday.
- US Dollar Index pushes lower toward 92.80 ahead of American session.
- UoM Consumer Sentiment Index data from US will be looked upon for fresh impetus.
After losing more than 40 pips on Thursday, the NZD/USD pair seems to have gone into a consolidation phase on Friday and was last seen rising 0.12% on the day at 0.7007.
Falling US T-bond yields weigh on DXY
The renewed USD weakness ahead of the American session seems to be helping NZD/USD stay in the positive territory. Pressured by a more-than-1% decline witnessed in the benchmark 10-year US Treasury bond yield, the US Dollar ındex is losing 0.18% on a daily basis at 92.82.
Earlier in the day, the data from New Zealand showed that the Business NZ PMI improved to 62.6 in July from 60.7 in June. This reading came in better than the market expectation of 56.6 but failed to trigger a noticeable market reaction.
The University of Michigan's preliminary Consumer Sentiment Index data for August will be the last data of the week featured in the US economic docket. Investors expect the index to stay unchanged at 81.2 following July's modest decline. Although an upbeat reading could help the USD gather strength ahead of the weekend, NZD/USD is unlikely to make a sharp move in either direction amid thin trading conditions.
US Michigan Consumer Sentiment August Preview: Payrolls, inflation and the pandemic.
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.
