- NZD/USD prints some gains on Friday.
- NZD losses demand despite strong GDP data.
- USD remains resilient after dismal US data.
The NZD/USD pair edges higher in the initial Asian session on Friday. The pair continues with its downside momentum since the beginning of the month, after testing the high near the 0.7320 level.
At the time of writing, NZD/USD trades at 0.7013, up 0.21% for the day.
The US Dollar Index (DXY), which measures the greenback performance against its six major rivals, eases from the high of 92.00 level. The US dollar moves in tandem with the US 10-year benchmark yields, which retreats toward 1.50%.
The hawkish Fed stance on inflation and interest rates forecast pushed the USD higher on Wednesday. The Initial Jobless Claims rose to 412K, much higher than the market expectations at 359K. This increase was recorded for the first time in seven weeks. The higher reading makes investors cautious toward the US dollar.
On the other hand, the Kiwi lost its ground as investors flew to safer assets on increased volatility after the Fed surprised the market. On the domestic side, New Zealand’s economy grew much faster than expected in Q1. The Gross Domestic Product (GDP) rose to 1.6% in March as compared to the market consensus at 0.5%.
It is worth noting that S&P 500 Futures are trading at 4,217, up 0.06% for the day.
As for now, the dynamics around the US dollar continue to influence the pair’s performance for the time being.