NZD/USD erases majority of early gains, trades below 0.6550

• NZD/USD continues to fluctuate in weekly range above 0.6500.
• US Dollar Index stays in negative territory near 96.00 after mid-tier data.
• NZD/USD remains on track to end week little changed.

The NZD/USD pair rose to a daily high of 0.6555 during the European trading hours but lost its traction in the second half of the day. After dropping to 0.6532, the pair rebounded modestly in the last hour and was last seen trading at 0.6540, gaining 0.08% on a daily basis.

DXY stays in red in quiet day

Despite this recent action, NZD/USD continues to fluctuate in a relatively tight 90-pip weekly range above 0.6500. Moreover, the pair remains on track to finish the week little changed.

Earlier in the session, the data published by the US Census Bureau revealed that Building Permits and Housing Starts in June rose by 2.1% and 17.3%, respectively, but had little to no impact on the USD's performance. The US Dollar Index (DXY), which closed 0.27% higher boosted by risk-off flows on Thursday, is now down 0.24% on the day at 96.08.

Meanwhile, Wall Street's main indexes started the day in the positive territory, suggesting that the greenback could have a hard time ending the week on a strong footing.

Technical levels to watch for