NZD/USD falls to near 0.6000 ahead of Michigan Consumer Sentiment Index

• The NZD/USD pair reaches the 10-week low of 0.5987 on Friday.
• Michigan Consumer Sentiment Index is expected to come in at 69 in October, against its previous 68.9 reading.
• ANZ-Roy Morgan Consumer Confidence index fell to 91.2 in October, breaking a three-month upward trend.

The NZD/USD pair has given up recent gains from the previous session, trading around 0.6000 during early European hours on Friday. The pair reaches a 10-week low of 0.5987 earlier in the Asian session.

On Thursday, data indicated that US unemployment claims dropped significantly in late October, underscoring the strength of the labor market. Additionally, a rise in the S&P PMI further highlights robust momentum in the private sector.

The recent positive US data supported the growing expectations that the Federal Reserve (Fed) will adopt a less aggressive approach to rate cuts than previously anticipated. Traders will be watching US Durable Goods Orders and the Michigan Consumer Sentiment Index data, due later in the North American session.

Additionally, the USD is also strengthened by uncertainties surrounding the upcoming US presidential election. According to a recent Reuters/Ipsos poll, Vice President Kamala Harris holds a narrow lead of 46% to 43% over former President Donald Trump in a six-day poll that concluded on Monday.

Republican nominee Donald Trump expressed his intent on Thursday to build an economy that supports all American communities. Meanwhile, Vice President Kamala Harris received support from rock legend Bruce Springsteen, entertainer Tyler Perry, and former President Barack Obama at a rally in Georgia.

In New Zealand, the ANZ-Roy Morgan Consumer Confidence index declined to 91.2 in October from 95.1 in September, breaking a three-month upward trend.

Traders remain cautious as labor market challenges continue to weigh on market sentiment despite anticipated interest rate cuts from the Reserve Bank of New Zealand (RBNZ). However, rising house prices are helping to bolster overall confidence, inflation has begun to stabilize within the RBNZ's target range.