The NZD/USD pair remained stable during the Asian session on Friday, trading around 0.5960. The New Zealand Dollar (NZD) benefited from improved risk sentiment, which supported the pair. However, the US Dollar (USD) saw a slight rebound, limiting the NZD/USD pair’s gains.
The US Dollar Index (DXY) rose to around 105.70 against six major currencies, but its gains may be restrained by lower US Treasury yields. Mixed preliminary data from the US on Thursday, including slower GDP growth and higher consumer prices, put pressure on the Greenback.
In New Zealand, the ANZ-Roy Morgan Consumer Confidence index dropped to 82.1 in April, its lowest level since 2008. Despite this decline, consumer confidence in New Zealand remains relatively high. Furthermore, Stats NZ reported a trade surplus in March, driven by increased exports and reduced imports, indicating a sluggish economy grappling with high interest rates.
Investors are now looking ahead to the US Personal Consumption Expenditures (PCE) Price Index data for March, which could provide insights into inflationary pressures and potential impacts on US monetary policy.