New Zealand Dollar holds steady as US Dollar retreats
NZD/USD trades around 0.5665 on Friday at the time of writing, virtually unchanged on the day, as the New Zealand Dollar (NZD) struggles to capitalize on a moderate decline in the US Dollar (USD).
On Friday, the New Zealand Dollar (NZD) held steady against the US Dollar (USD) at around 0.5665, virtually unchanged for the day. The Greenback experienced some selling pressure despite higher US Treasury yields as traders evaluated mixed US economic data and geopolitical events. The US Dollar Index (DXY) fell by 0.22% on the day, reaching approximately 101.00 after peaking at 101.40 on Thursday - its highest level in nearly two months.
Meanwhile, the 10-year US Treasury yield hovered near 5.19%, slightly lower than Thursday's peak of 5.22%. Economic data released by the US showed mixed results, with the University of Michigan Consumer Sentiment Index for September at 48.1, up from the preliminary estimate of 47.6 but still below the August figure of 51.7. Despite elevated inflation expectations, core durable goods orders increased in August, and July's figures were revised upwards, indicating resilient business spending.
Geopolitical developments, such as reports of a potential US-Iran agreement and the recent visit of Chinese President Xi Jinping to the US, also impacted market sentiment. Despite the slight retreat in the US Dollar, the NZD/USD remained stable, suggesting limited demand for the Kiwi.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
