NZD/USD stays within touching distance of 0.7000 after disappointing US data
- NZD/USD clings to strong daily gains in early American session.
- US Dollar Index stays deep in the red near 92.00.
- US economy grew at a softer pace than expected in Q2.
The NZD/USD pair stays in the positive territory in the early American session as the greenback continues to have a difficult time finding demand. As of writing, the pair was up 0.63% on a daily basis at 0.6991.
DXY tests 92.00 after US data
Disappointing macroeconomic data releases from the US seem to be weighing on the USD. The US Bureau of Economic Analysis reported on Thursday that the US economy expanded by 6.5% on a yearly basis in the second quarter. This reading missed the market expectation for a growth of 8.5%.
Furthermore, weekly Initial Jobless Claims arrived at 400,000, coming in worse than analysts' estimate of 380,000. Reflecting the unabated USD weakness, the US Dollar Index (DXY) is down 0.3% on the day at 91.99. Later in the session, June Pending Home Sales will be featured in the US economic docket.
Earlier in the day, the data from New Zealand showed that the ANZ Business Confidence Index worsened to -38 in July from -0.6 in June but this reading was largely ignored by market participants. In the Asian session on Friday, Roy Morgan Consumer Confidence Index will be looked upon for fresh impetus.
Technical levels to watch for