NZD/USD flirts near 0.7100 mark as USD retreats
- NZD/USD trades higher on Friday but stays directed below weekly highs.
- Lower US Treasury yields undermine the demand for the US dollar.
- Risk aversion amid falling equities weighs on Kiwi.
NZD/USD exhibits some strength on Thursday’s Asian session. The pair opened higher and hovered in a tight trading band with no meaningful traction.
At the time of writing, NZD/USD is trading at 0.7107, up 0.05% for the day,
The US Dollar Index (DXY), which measures the greenback performance against its six major rivals fell from the high of 93.00 following an uptick in the US 10-year benchmark yields.
The US Treasury yields turned higher to 1.29%, after touching a near two month high of 1.38% early in the week.
Investors remain invested in the greenback in a general risk-averse environment and upbeat economic data. The US Initial Jobless Claims fell to 310K, below the market expectations of 335K.
Meanwhile, Chicago Fed President Charles Evans comments weighed on the greenback, as he said that the US economy is not out of woods yet despite strong economic growth amid supply-chain disruptions and labor market bottleneck
On the other hand, Kiwi lost its momentum on reduced risk appetite among investors.
It is worth noting that S&P 500 Futures were trading at 4,493, down 0.46% for the day
As for now, all eyes are on New Zealand’s Visitors Arrival, US PPI data to take fresh trading impetus.
NZD/USD additional levels