- NZD/USD is rebounding after Thursday’s selloff.
- US Dollar Index moves mildly lower to 93.50 ahead of US data.
- US Retail Sales to increase by 0.7% in September.
The NZD/USD shed 50 pips on Thursday and pared losses on Friday. The pair trades +0.27% at 0.6610.
DXY mildly lower ahead of US data
Market sentiment and the USD continues to drive NZD/USD. New Zealand business activity in the service sector grew strongly in September with the Business NZ PMI rising to 54 from 50.7 in August.
The upbeat market mood on Friday is keeping pressure on USD. After picking up to 93.90 on Thursday, the US Dollar Index (DXY) is consolidating and trades – 0.19% at 93.59.
September Retail Sales data from the US will be in focus analysts forecast +0.7% increase month on month.An upbeat reading could boost risk flows .
US Industrial Production and the University of Michigan’s Consumer Sentiment Index in focus.