NZD/USD advances to multi-week highs near mid-0.63s
- Attention remains on United States (US)-China trade negotiations.
- US Dollar Index extends losses below the 98.50 mark on Friday.
- Coming up: Consumer Confidence data from the US.
After closing above the 0.63 handle on Thursday, the NZD/USD pair extended its rally and touched its highest level since September 25th at 0.6345. As of writing, the pair was up 0.35% on the day at 06340.
Although the data from New Zealand (NZ) showed that the Business NZ Purchasing Managers' Index (PMI) stayed unchanged at 48.4 in September to fall short of the market expectation 49, the Kiwi preserved its strength boosted by the heightened hopes of the United States (US) and China reaching a trade deal.
Latest headlines surrounding the trade negotiations suggest that China is open to making a partial trade deal with the US that includes terms on Yuan valuation in exchange for delaying US tariffs on Chinese goods. President Trump is scheduled to meet China's Vice Premier Lie He at 18:45 GMT.
USD remains on the back foot
Meanwhile, the upbeat market mood continues to weigh on the Greenback and helps the pair cling to its gains. Ahead of the University of Michigan's Consumer Confidence (preliminary) and Eric Rosengren's, president and CEO of the Federal Reserve Bank of Boston, speech, the US Dollar Index is down 0.26% on the day at 98.44.
Technical levels to watch for