Ella 
NZD/USD is trading higher around 0.5900 during the European session on Friday as the US dollar (USD) retreats from session highs. U.S. Treasury yields pared daily losses, which could help support the dollar.
The U.S. dollar (USD) remains strong, buoyed by a slew of positive economic data on the state of the U.S. economy. The U.S. Dollar Index (DXY), which measures the greenback’s performance against six other major currencies, is currently trading around 104.90. Notably, the index has retreated slightly from Thursday’s peak, which was its highest level since April.
U.S. labor force data released on Thursday showed that as of September 1, the number of initial jobless claims in the United States fell to 216,000, a decrease from the previous 229,000. The figure was below expectations for 234,000. In addition, U.S. unit labor costs rose to 2.2% in the second quarter (Q2) from 1.6% previously, contrary to expectations.
Additionally, the Federal Reserve is expected to keep interest rates rising over the long term. Additionally, the Federal Reserve is expected to raise interest rates by 25 basis points by the end of 2023. This hawkish sentiment has put considerable pressure on the NZD/USD pair.
On concerns related to China, Chinese President Xi Jinping has decided not to attend the upcoming G20 leaders’ summit in New Delhi this Saturday. This could exacerbate existing tensions in the already fragile and deteriorating Sino-U.S. relationship. This is particularly noteworthy given that US President Joe Biden will attend the summit.
