NZD/USD pares majority of weekly losses, trades around 0.7150

• NZD/USD is posting strong daily gains on Friday.
• US Dollar Index stays in the negative territory below 92.50.
• Wall Street's main indexes remain on track to open in the positive territory.

Following the sharp decline witnessed at the start of the week, the NZD/USD pair fluctuated in a very tight range in the last two days but managed to stage a decisive rebound on Friday. As of writing, the pair was up 0.63% on the day at 0.7146.

Eyes on US PPI data, Wall Street

Earlier in the day, the data from New Zealand revealed that Electronic Card Sales contracted by 19.8% on a monthly basis in August. This reading missed the market expectation for an increase of 1.7%. Despite the disappointing data, the positive shift seen in market sentiment helped the NZD find demand. Reflecting the upbeat market mood, US stock index futures are up between 0.4% and 0.5% on a daily basis.

On the other hand, the modest selling pressure surrounding the greenback is also helping NZD/USD preserve its bullish momentum. Following a three-day rally, the US Dollar Index (DXY) fell 0.2% on Thursday and was last seen losing 0.08% at 92.46.

Later in the session, August Producer Price Index (PPI) data will be featured in the US economic docket. In case Wall Street's main indexes push higher after the opening bell, risk flows are likely to make it difficult for the DXY to recover its losses. 

Technical levels to watch for