NZD/USD falls to fresh two-week lows near 0.6620 as DXY extends recovery
- US Dollar Index pushes higher to 97.50 area on Thursday.
- Upbeat market mood could help NZD/USD limit losses.
- Coming up: US weekly Jobless Claims and speeches by FOMC members Kaplan, Williams, Kashkari.
The NZD/USD pair posted modest daily gains on Wednesday supported by the improving market sentiment and spent the Asian session moving sideways near 0.6650 before losing its traction. As of writing, the pair was trading at its lowest level in two weeks at 0.6617, losing 0.42% on a daily basis.
USD's performance drives NZD/USD on Thursday
Easing geopolitical tensions in the Middle East helped the risk-sensitive NZD stay resilient against the greenback on. However, surging US Treasury bond yields and the upbeat ADP employment report from the US on Wednesday allowed the USD to preserve its strength on Thursday.
Moreover, the sharp drop witnessed in the GBP/USD pair provided an additional boost to the USD in the last hour and forced the pair to stretch lower. As of writing, the US Dollar Index was up 0.15% on the day at 97.45.
Later in the session, the weekly Initial Jobless Claims data from the US will be looked upon for fresh impetus. More importantly, Dallas Fed President Kaplan, Minneapolis Fed President Kashkari and NY Fed President Williams will be delivering speeches.
In the early trading hours of the Asian session on Friday, Stats New Zealand will release the Total Filled Jobs data.
Technical levels to watch for