- 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