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  • Private sector employment in the U.S. increased less than expected in February.  
  • Trade deficit continues to widen.
  • US Dollar Index stays in its daily range below 97.

Following the sharp fall in the Asian session, the NZD/USD pair staged a modest rebound but failed to turn positive on the day. As of writing, the pair was trading at 0.6777, losing 0.18% on a daily basis. Earlier in the day, the heavy selling pressure surrounding the AUD amid disappointing Australian GDP readings weighed on the strongly-correlated kiwi and forced the pair to slump to its lowest level in three weeks at 0.6753.

In the meantime, the US Dollar Index, which touched its highest level in two weeks a little above the 97 mark yesterday, now seems to be staying in a consolidation phase. According to the ADP, private sector employment in the U.S. increased by 183,000 in February to fall short of the market expectation of 189,000. However, on a positive note, January’s reading got revised up to 300,000 from 213,000 to offset any potential impacts of the data on the DXY.  Other data from the U.S. revealed that the trade deficit rose to $59.8 billion in December from $50.3 billion in January.

Before the Fed publishes its Beige Book later in the day, the US Dollar Index is posting small losses at 96.85. On the other hand, the next significant data from New Zealand, fourth quarter manufacturing sales, will be published in the early trading hours of the Asian session on Friday.

Key technical levels

NZD/USD

Trends:
       Daily SMA20:  0.682
       Daily SMA50:  0.6798
       Daily SMA100:  0.6771
       Daily SMA200:  0.6748
Levels:
       Previous Daily High:  0.6828
       Previous Daily Low:  0.6768
       Previous Weekly High:  0.6903
       Previous Weekly Low:  0.6794
       Previous Monthly High:  0.6943
       Previous Monthly Low:  0.6719
       Daily Fibonacci 38.2%:  0.6791
       Daily Fibonacci 61.8%:  0.6805
       Daily Pivot Point S1:  0.6771
       Daily Pivot Point S2:  0.6739
       Daily Pivot Point S3:  0.6711
       Daily Pivot Point R1:  0.6831
       Daily Pivot Point R2:  0.6859
       Daily Pivot Point R3:  0.6891