NZD/USD struggles to find direction, continues to trade around 0.6600
- Credit Card Spending in New Zealand rose less than expected.
- US Dollar Index stays calm below 97.50 on Friday.
- Coming up: Third-quarter GDP and PCE Price Index data from US.
The NZD/USD pair registered modest gains and closed above the 0.6600 mark on Thursday but struggled to push higher amid a lack of fresh fundamental drivers. As of writing, the pair was down 0.13% on a daily basis at 0.6598.
The only data from New Zealand on Friday showed Credit Card Spending in November rose 4.5% on a yearly basis following October's reading of 2.5% but fell short of the market expectation for an increase of 5%. Nevertheless, this reading was largely ignored by the market participants.
In the meantime, the absence of fresh developments surrounding the US-China trade deal allowed the market sentiment to remain neutral.
Eyes on high-tier US data
In the second half of the day, the US Bureau of Economic Analysis will publish its final estimate of the third-quarter Gross Domestic Product (GDP) growth alongside the Personal Consumption Expenditures (PCE) Price Index. Ahead of the data, the US Dollar Index, which tracks the greenback's performance against a basket of six major currencies, is flat on the day at 97.40.
Previewing the data, "the PCE inflation is the measure the Fed is targeting," noted Danske Bank analysts. "Consensus looks for a small decline in core PCE inflation to 1.5% y/y from 1.6% y/y in October, still below the Fed's 2% target.”
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.
