- Upbeat GDT Price Index favored buyers from 200-day SMA support.
- ANZ commodity price and China’s Caixin services PMI will bear immediate attention.
NZD/USD is on the bids near 0.6755 during early Asian sessions on Wednesday. The pair earlier dropped to 200-day simple moving average (SMA) after overall USD strength dragged it under 0.6770 trend-line. However, better than the forecast New Zealand GDT price index triggered the quote’s recent pullback ahead of another domestic data namely ANZ commodity.
The sluggish print of New Zealand NZIER business confidence damaged previous risk-on rally in antipodeans whereas overall market support for the greenback amid safe-haven demand continued dragging the NZD/USD pair downwards.
While weak readings from the US durable goods orders couldn’t stop sellers from portraying a dip beneath the ten-week-old ascending support-line to visit 200-day SMA, better than the forecast +0.3% growth of New Zealand GDT price index to +0.8% versus +1.9% prior activated price pullback from important SMA.
March month reading of ANZ commodity price from New Zealand can gain immediate market attention. The figure is less likely to favor recent pullback if matching -0.3% forecast compared to +2.8% previous. From the US side, ADP employment change, Markit services PMI and ISM non-manufacturing PMI will be in limelight.
The ADP employment change, an early signal to Friday’s NFP, might have softened to 170K from 183K in March whereas Markit services PMI could confirm 54.3 initial estimations. Also, ISM non-manufacturing PMI could drop to 58.0 from 59.7 earlier.
Additionally, China’s Caixin services PMI can also have its impact on New Zealand Dollar (NZD) as the dragon nation is Kiwi’s second largest customer and world’s largest commodity user. Market consensus support 52.3 figure of Caixin services PMI against 51.1 previous.
NZD/USD Technical Analysis
200-day SMA level of 0.6730 becomes an important support, a break of which can open doors for the downward trajectory to 0.6690 and 0.6650.
On the upside, support-turned-resistance at 0.6770 and 100-day SMA level of 0.6815 can limit the quote’s immediate upside.
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