NZD/USD bulls pushed back by a firmer US dollar
- NZD/USD is underwater as the US dollar corrects Thursday's sell-off.
- Markets are fixated on the US growth story, key data is eyed.
NZD/USD is down a touch by some 0.17% at the time of writing and has fallen on Friday from a high of 0.6246 to a low of 0.6228 so far. The US dollar is firming from overnight lows, putting some heat into the kiwi.
''The Kiwi bounced back to the mid-0.62s overnight as the USD came under pressure against most peers in a move that looks like it was driven by fears of slowing growth. Equity markets are lower, but not by much and it’s arguable that they (and risk appetite in general) have been saved a bit by the sharp fall in US bond yields,'' analysts at ANZ Bank explained.
The highlights of Thursday's data schedule were a faster monthly pace of growth in the PCE price index, steady personal income expansion, and slower spending growth. Personal income was up 0.5% in May, right on expectations after a 0.5% gain in the previous month.
In other data, the Chicago PMI fell to 56.4 in June from 60.3 in May. Other manufacturing data already released have suggested slower growth or outright contraction. The ISM's national index will be released on Friday. Initial jobless claims decreased by 2,000 to 231,000 in the week ended June 25, but the four-week moving average rose by 7,250 to 231,750, continuing the string of gains.