NZD/USD consolidates Tuesday's gains below 0.7000 ahead of US data
- NZD/USD is trading in a narrow band on Wednesday.
- US Dollar Index turns flat after dropping below 92.00.
- Investors await key macroeconomic data releases from US.
After advancing to its highest level since June 2018 at 0.7006 on Tuesday, the NZD/USD pair lost its bullish momentum and started to consolidate its gains on Wednesday. As of writing, the pair was down 0.13% on a daily basis at 0.6970.
During the European trading hours, Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr noted that low-interest rates ensured that the NZD's exchange rate remained competitive. On a similar note, RBNZ Deputy Governor Christian Hawkesby said that the bank is ready to implement negative rates if conditions warrant it. Despite these dovish remarks, the kiwi stayed relatively resilient against its rivals.
DXY rebounds above 92.00
On the other hand, the cautious market mood on Wednesday is helping the greenback find demand ahead of key macroeconomic data releases from the US. The US Dollar Index, which dropped to its lowest level since early September at 91.94, is currently virtually unchanged on the day at 92.22.
The US Bureau of Economic Analysis will publish the second estimate of the third quarter Gross Domestic Product (GDP) and the Personal Consumption Expenditures (PCE) Price Index data later in the day. Moreover, the weekly Initial Jobless Claims, New Home Sales and the University of Michigan's Consumer Consumer Sentiment Index will be looked upon for fresh catalysts.
On Thursday, the Statistics New Zealand will release the October Trade Balance data.
Technical levels to watch for