NZD/USD clings to small daily gains near 0.6560 ahead of US data
- NZD/USD rose to a fresh weekly high on Wednesday.
- US Dollar Index stays in a consolidation phase above 93.00.
- Focus shifts Durable Goods Orders data from US.
The NZD/USD pair climbed to a fresh weekly high of 0.6574 on Wednesday but struggled to preserve its momentum in the absence of significant macroeconomic data releases. As of writing, the pair was up 0.2% on a daily basis at 0.6560.
Earlier in the day, the data published by Statistics New Zealand showed that the trade surplus narrowed to NZ$282.00 million in July from NZ$475.00. Despite this uninspiring data, the kiwi stayed resilient against its rivals on easing US-China geopolitical tensions.
Eyes on US data ahead of FOMC Chairman Powell's speech
Meanwhile, the US Dollar Index is posting small daily gains above 93.10 on Wednesday. Although the market mood remains upbeat, the relentless advance witnessed in the US Treasury bond yields helps the greenback gather strength. The 10-year US T-bond yield, which gained nearly 4% both on Monday and Tuesday, was last seen gaining 3.3% on the day.
Later in the day, the Durable Goods Orders data from the US will be looked upon for fresh impetus. However, the market reaction to this data is likely to be muted with investors waiting for FOMC Chairman Jerome Powell to deliver his opening remarks at the Jackson Hole Symposium on Thursday.
Previewing Powell's speech, Goldman Sachs analysts said that they expect Powell to announce that the FOCM will be adopting average inflation targeting (AIT) of 2-2.5%.
Technical levels to watch for