- Upbeat trade balance data from New Zealand help kiwi gather strength.
- US Dollar Index stays flat on the day above 98.
The NZ/DUSD pair gained traction in the Asian session and extended its recovery that started after the pair fell to its lowest level since the flash crash witnessed on January 2nd at 0.6580 on Thursday. As of writing, the pair is up 0.42% on the day at 0.6654.
The data published by the Statistics New Zealand showed that the country posted a trade surplus of $922 million in March with a strong increase in exports following February's $68 million deficit and beat analysts estimate of +$131 million by a wide margin to provide a boost to the kiwi. Further details of the report revealed that the annual trade deficit narrowed to $5.62 billion in the same period.
On the other hand, the US Dollar Index is staying quiet above the 98 mark following the impressive rally witnessed during the first half of the day as investors are staying on the sidelines before the U.S. Bureau of Economic Analysis publishes its first estimate of Q1 GDP growth.
Previewing the data, "Our economists expect a +2.6% qoq/saar reading which is above the market consensus of +2.3%. For what it’s worth the range of expectations for that consensus reading is from as low as +1.0% to as high at +2.9%, with the Atlanta Fed’s tracker at +2.7%. A reminder that Q4 came in at +2.2%,” Deutsche Bank analysts said.
Additionally, the University of Michigan will announce the final April Consumer Confidence Index.
Technical levels to consider
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