NZD/USD continues to trade near 0.63 after US data
- Annual core PCE Price Index in US stays unchanged at 1.6% in July.
- US Dollar Index clings to daily gains near mid-98s after mixed data.
- NZD/USD struggles to pull away from multi-year lows.
The NZD/USD pair fell for the fourth straight day on Friday and dropped below the 0.63 mark for the first time since September 2015. Although the pair recovered modestly during the European trading hours, it struggles to extend its rebound as the Greenback preserves strength following the mixed macroeconomic data releases from the US. As of writing, the pair was virtually unchanged on a daily basis at 0.6308.
USD largely ignores today's data
According to the data published by the US Bureau of Economic Analysis (BEA), the Personal Consumption Expenditure (PCE) Price Index rose 0.2% and 1.4% on a monthly and yearly basis, respectively. The core PCE Price Index, the Fed's favourite gauge of inflation, stayed unchanged at 1.6% on an annual basis as expected.
Further details of the publication revealed that personal income in July increased by 0.1% but personal spending in the same period rose by 0.6%. These data didn't have a significant impact on the Greenback's market valuation and the US Dollar Index was last up 0.05% on the day at 98.50.
Later in the session, the ISM Chicago PMI and the University of Michigan's Consumer Confidence Survey will be looked upon for fresh impetus. Nevertheless, these data are unlikely to trigger sharp movements and the pair is likely to post its lowest monthly close in more than ten years.
Technical levels to watch for