During the Asian trading session on Friday, the NZD/USD pair halted its two-day upward trajectory, hovering around 0.6020. The New Zealand Dollar (NZD) experienced downward pressure following the unveiling of the Business NZ Performance of Manufacturing Index (PMI), a pivotal metric gauging business activity within New Zealand’s manufacturing sector.
Despite ongoing challenges, April saw an improvement in manufacturing activity, as indicated by a seasonally-adjusted PMI figure of 48.9, surpassing March’s 46.8, yet remaining below February’s 49.1. Although the manufacturing sector has endured contraction for 14 consecutive months, the recent data suggests signs of potential recovery.
Anticipation mounts for Saturday’s release of Chinese Consumer Price Index (CPI) data, expected to reveal a modest 0.1% increase for April. This announcement holds significance for New Zealand’s market, given the close trading ties between the two nations.
In the realm of the US Dollar Index (DXY), which measures the performance of the US Dollar (USD) against a basket of six major currencies, efforts to stage a rebound are evident amidst sentiments of the Federal Reserve (Fed) maintaining higher interest rates for an extended period. However, the Greenback encountered resistance amid dwindling US Treasury yields, possibly influenced by underwhelming US Initial Jobless Claims data released on Thursday.
Recent statistics from the US Bureau of Labor Statistics (BLS) revealed a deviation from expectations, with the number of individuals filing for unemployment benefits surging to 231,000 for the week ending May 3, surpassing estimates of 210,000 and marking an uptick from the previous week’s reading of 209,000.
As the day progresses, market participants await the preliminary Michigan Consumer Sentiment Index for May, with forecasts hinting at a marginal decline. This index serves as a barometer of consumer sentiment in the United States, encapsulating opinions on personal finances, business conditions, and purchasing conditions.
