- NZD/USD tumbled towards 0.5820s due to broad US Dollar strength.
- US economic data was positive, except for Durable Good Orders missing estimates.
- Market participants eye the US Core PCE, Consumer Sentiment, and Pending Home Sales.
The NZD/USD retreats from weekly highs reached around the 50-day Exponential Moving Average (EMA) and dived towards the 0.5820 area due to overall US Dollar strength across the board, blamed on the US economy beating growing expectations for the third quarter. Also, as shown by Wall Street closing in the red, a risk-off impulse was a headwind for the NZD. Therefore, the USD Dollar appreciated, as shown by the NZD/USD falling 0.10%, trading at 0.5824 at the time of writing.
NZD/USD wobbles trim some of its weekly gains on US data
US equities registered losses between 0.61% and 1.63%, except for the Dow Jones Industrial, up 0.61%. The US Department of Commerce reported that Gross Domestic Product (GDP) for Q3 in the United States (US) grew by 2.6%, blowing estimates of 2.4%, a signal of resilience by the US economy amidst a period of tightening monetary conditions. However, the economy is showing that consumer spending is decelerating, reporting a 1.4% gain vs. 2% achieved in the second quarter.
At the same time, the US Department of Labor reported that unemployment claims increased by 217K but lower than 220K foreseen and above the previous week’s 214K. Even though most data was positive, Durable Goods Orders for September expanded by 0.4% MoM, below 0.6% estimates, showing that inventories are building up.
Hence, the US Dollar Index, a gauge of the buck’s value vs. a basket of rivals, edged up by 0.82%, at 110.585, despite falling US Treasury yields. The 10-year benchmark note rate dropped 7 bps, at 3.929%, as traders speculation for a Fed pivot increased.
An absent New Zealand economic data would leave traders adrift to Australia’s PPI for Q3, alongside US Dollar dynamics. Contrarily, the US docket will feature the Federal Reserve preferred inflation gauge, the Core PCE, the University of Michigan Consumer Sentiment, and Pending Home Sales.
NZD/USD Key Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.