NZD/USD posts modest daily losses near 0.6450 on broad-based USD strength

• NZD/USD is moving sideways in a tight range on Thursday.
• US Dollar Index is edging higher for the third straight day.
• New Zealand's economy contracted by 1.6% on a quarterly basis in Q1.

The NZD/USD continues to have a difficult time making a decisive move in either direction on Thursday and fluctuates in a tight range below 0.6500. As of writing, the pair was down 0.17% on a daily basis at 0.6445.

NZD ignores GDP data

Earlier in the day, the data published by Statistics New Zealand revealed that the Gross Domestic Product (GDP) contracted by 1.6% on a quarterly basis in the first quarter. Although this reading came in worse than the market expectation for a decline of 1% in the economic activity, the kiwi remained relatively quiet against its rivals.

In the second half of the day, the heavy selling pressure surrounding the GBP following the Bank of England's policy announcements ramped up the demand for the greenback. At the moment, the US Dollar Index is up 0.23% on the day at 97.30.

The US Department of Labor's weekly report showed that 1.5 million Americans applied for unemployment benefits in the week ending June 13th. Meanwhile, Wall Street's main indexes are trading little changed on Thursday, reflecting a neutral market mood that allows NZD/USD to extend its sideways grind.

There won't be any macroeconomic data releases during the Asian session on Friday and the pair is likely to remain stuck in its consolidation channel.

Technical levels to watch for