- NZD/USD is edging higher at the start of the week.
- US Dollar Index stays quiet around 93.00 on Monday.
- Focus shifts to ISM Services PMI data from US.
The NZD/USD pair managed to register small gains last week and spent the Asian trading hours in a relatively tight range on Monday. Despite the thin trading conditions on Easter Monday, the pair started to inch higher and was last seen gaining 0.2% on the day at 0.7044.
Investors await Services PMI data from US
On Friday, the data published by the US Bureau of Labor Statistics showed that Nonfarm Payrolls (NFP) in the US surged by 916,000 in March, compared to analysts’ estimate of 647,000. The upbeat labour market data seems to be providing a boost to market sentiment and Wall Street’s main indexes look to return from the long weekend on a strong footing.
Currently, the S&P 500 Futures are up 0.56% on a daily basis, suggesting that the greenback could have a hard time finding demand in the second half of the day. At the moment, the US Dollar Index is virtually unchanged at 93.03.
Later in the session, the ISM-NY Business Conditions Index, the IHS Markit Services PMI and the ISM Services PMI from the US will be looked upon for fresh impetus. The US economic docket will feature February Factory Orders data as well.
In the meantime, the 10-year US Treasury bond yield is staying in the positive territory around 1.73% and a break above 1.75% could help the greenback outperform its rivals and limit NZD/USD’s upside.
Technical levels to watch for
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