Ella 
In the Asian market on Friday, the NZD/USD continued its second day of gains and traded higher near 0.5970. NZD/USD was boosted by upbeat data from New Zealand’s ANZ-Roy Morgan Consumer Confidence Index and China’s Caixin Manufacturing PMI for August.
Macroeconomic data released on Friday added to this support, consolidating NZD/USD strength. Consumer confidence in New Zealand’s economic activity rose to 85 from 83.7 previously. At the same time, China’s Caixin Purchasing Managers’ Index rose to 51.0 from the previous value of 49.2, which was better than the expected 49.3.
However, market participants will be cautious before placing new bets on NZD/USD ahead of the release of US employment and manufacturing data. The data includes U.S. average hourly earnings, nonfarm payrolls and the ISM Manufacturing Purchasing Managers’ Index.
The dollar is strengthening after U.S. data released on Thursday were lackluster. The U.S. Dollar Index (DXY), which measures the greenback’s performance against six other major currencies, was trading higher at around 103.60 at the time of writing.
The U.S. core PCE price index (monthly rate), the Federal Reserve Board’s (Fed’s) preferred inflation gauge, rose to 4.2% in July from 4.1% previously, in line with market consensus. The number of people filing for unemployment benefits in the United States for the week ended August 25 was 228,000, compared with expectations of 235,000 and the previous value of 232,000.
In addition, Nicola Willis is the finance spokesperson for New Zealand’s main opposition party. In an interview with Bloomberg TV, Willis said that if his party comes to power, it will cancel the Bank of New Zealand’s employment target as soon as possible and only retain the inflation target. Willis said this “will build confidence in the Reserve Bank’s focus on its inflation mandate”.
