NZD/USD posts small daily losses around 0.7230 ahead of US data
- NZD/USD is trading in a tight range following Thursday's decline.
- US Dollar Index edges higher toward 90.80 on Friday.
- Eyes on Personal Income, Personal Spending and PCE Price Index data from US.
After rising to its highest level since early March at 0.7286 on Thursday, the NZD/USD pair lost its traction and closed the day in the negative territory. With the greenback preserving its strength ahead of key macroeconomic data releases, the pair continues to edge lower and was last seen losing 0.15% on the day at 0.7234.
Focus shifts to US data
The sharp upsurge witnessed in the US Treasury bond yields and the upbeat GDP data, which showed that the economy grew by 6.4% in the first quarter, helped the USD outperform its rivals. Following Wednesday's FOMC-inspired decline, the US Dollar Index (DXY) managed to post small daily gains and extended its rebound on Friday. At the moment, the DXY is up 0.18% on the day at 90.79.
Later in the session, the US Bureau of Economic Analysis will release the Personal Consumption Expenditures (PCE) Price Index data, the Fed's preferred gauge of inflation, alongside Personal Income and Personal Spending figures.
Investors expect the Core PCE Price Index to rise to 1.8% in March from 1.4% in February. A stronger-than-expected reading could help US T-bond yields push higher and provide a boost to the greenback ahead of the weekend.
On the other hand, the data from New Zealand showed on Friday that the Roy Morgan Consumer Confidence Index improved to 115.4 in April from 110.8 but the NZD failed to capitalize on this upbeat print.
Technical levels to watch for