NZD/USD trades with modest losses below 0.6700 ahead of US data
- NZD/USD is trading in a tight range following Wednesday's rally.
- US Dollar Index is posting modest losses, holds above 93.00.
- Weekly Initial Jobless Claims and PPI data will be released from US.
The NZD/USD pair staged a decisive rebound after closing the first two trading days of the week in the negative territory and gained more than 60 pips on Wednesday. With markets turning subdued on Thursday, the pair is consolidating its upside and was last seen losing 0.12% on the day at 0.6673.
DXY holds above 93.00
The upbeat market mood on Wednesday caused the greenback to lose interest and the US Dollar Index (DXY) snapped a six-day winning streak, closing 0.3% lower. The DXY is registering small daily losses at 93.10 ahead of the American session.
With risk flows softening on Thursday, the NZD struggled to preserve its strength. At the moment, S&P 500 futures are down 0.33% on the day, suggesting that Wall Street's main indexes are likely to start the day in the red.
Later in the day, the US Department of Labor will release its weekly Initial Jobless Claims figures. August Producer Price Index (PPI) data will be featured in the US economic docket as well.
Meanwhile, the European Central Bank will release its policy statement and updated economic projections. A sharp reaction in the EUR/USD pair could impact the greenback's overall performance and become a significant catalyst for NZD/USD.
In the early trading hours of the Asian session on Friday, the Busines NZ PMI data will be released from New Zealand.
Technical levels to watch for