NZD/USD continues to trade in tight range around 0.6950, eyes on US inflation data
- NZD/USD is struggling to find direction on Friday.
- US Dollar Index holds near 93.00 as investors await Powell's speech.
- Core PCE inflation in US is expected to rise to 3.6% from 3.5%.
The renewed USD strength on the back of hawkish Fed commentary on Thursday caused the NZD/USD pair to snap its three-day winning streak and close in the negative territory near 0.6950. With investors staying on the sidelines ahead of the highly-anticipated Jackson Hole Symposium, the pair is moving sideways on Friday.
Calm before the storm
Ahead of FOMC Chairman Powell's speech at 1400 GMT, the US Bureau of Economic Analysis will release the Personal Consumption Expenditures (PCE) Price Index data. On a yearly basis, the Core PCE inflation in the US is expected to edge higher to 3.6% in July from 3.5% recorded in June. However, the market reaction to this report is likely to remain muted with market participants looking for fresh clues regarding the Fed's taper outlook.
Personal Income, Personal Spending and the University of Michigan's Consumer Sentiment Index data will also be featured in the US economic docket.
Meanwhile, the US Dollar Index is moving sideways around 93.00, reflecting the market participants' hesitancy to take large positions.
Earlier in the day, the data from New Zealand revealed that the Roy Morgan Consumer Confidence Index declined to 109.6 in August from 113.1 in July but this print was largely ignored by investors.
Technical levels to watch for