NZD/USD stays relatively calm below 0.7200 as focus shifts to US data

NZD/USD trades in the positive territory on Friday.
US Dollar Index drops below 91.00 ahead of American session.
Investors await New Home Sales and preliminary PMI figures from US.
The NZD/USD pair broke below 0.7200 on Thursday and closed in the negative territory pressured by a negative shift witnessed in market sentiment in the second half of the day. On Friday, the pair gained traction amid broad-based USD weakness and was last seen gaining 0.15% on a daily basis at 0.7183.

DXY turns south on Friday
The data from New Zealand revealed on Friday that Credit Card Sales in March expanded by 2.2% on a yearly basis following February’s contraction of 12.6% and helped the kiwi gather strength.
Reports suggesting that US President Joe Biden will propose hiking capital gain tax rates on wealth to fund additional spending on families and child care caused Wall Street’s main indexes to close in the negative territory on Thursday.

The US Dollar Index (DXY) edged higher on this development but struggled to preserve its bullish momentum in the absence of significant fundamental drivers on Friday. Ahead of the IHS Markit’s preliminary Manufacturing and Services PMI, the DXY is losing nearly 0.4% at 90.93.

Meanwhile, Wall Street’s main indexes remain on track to start the day modestly higher with the S&P 500 Futures rising 0.2% ahead of the opening bell. If risk flows dominate the financial markets in the second half of the day, NZD/USD could try to push higher and post its best weekly close since February.