- ADP report from the U.S. disappoints on Thursday.
- US Dollar Index stays in daily range above 95.
- RBNZ Governor Orr is scheduled to deliver a speech at 21:30 GMT.
After staging a strong recovery from the multi-year low that it set near 0.6530 and closing the day near 0.66, the NZD/USD pair struggled to build on its bullish momentum on Thursday and fluctuated in a relatively tight range. As of writing, the pair was virtually unchanged on a daily basis at 0.6592.
Earlier today, a broad-based USD weakness witnessed following the dismal employment data helped the pair record small gains. According to the monthly report released by the ADP, the private sector added 163K new employees compared to analysts’ estimate of 190K. The US Dollar Index briefly fell below the 95 mark in the early NA session but reversed its course later on the back of an upbeat PMI report.
The ISM’s non-manufacturing report showed that the headline PMI rose to 58.5 in August from 55.7 in July. “There was a strong rebound for the non-manufacturing sector in August after growth ‘cooled off’ in July. Logistics, tariffs and employment resources continue to have an impact on many of the respective industries. Overall, the respondents remain positive about business conditions and the economy,” the publication read. As we approach the end of the NA session, the US Dollar Index is virtually unchanged on the day near 95.10.
In the early trading hours of the Asian session, Reserve Bank of New Zealand Governor Adrian Orr will be delivering a speech. Moreover, the AiG will publish its Performance of Construction Index.
Technical levels to consider
The immediate resistance for the pair aligns at 0.6615 (daily high) ahead of 0.6660 (Aug. 31 high) and 0.6700 (psychological level/50-DMA). On the downside, supports could be seen at 0.6570 (daily low), 0.6530 (Sep. 5 low) and 0.6500 (psychological level).
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