NZD/USD moves into a sideways drift, awaiting a catlyst, perhaps in Aussie GDP?
- NZD/USD bulls capped again on recovery attemps, making lower highs.
- NZD/USD move sinto a sideways drift ahead of Aussie GDP, all quiet NZ front though.
NZD/USD bulls have been pushed back into a sideways drift along the 0.6870/90 support area. NZD/USD is trading at 0.6875 having posted a high of 0.6879 and a low of 0.6871. The Milk auction had GDT PI +0.4% and WMP +1.7%, but there ws only a shortlived bid on that. The broader themes keep a lid on rallies and we await the US jobs data to potentially break a bone in the kiwis back to below these 0.6840 levels on a good outcome, cementing the December and 2018 rate hikes in. The ADP report should be prelude for us to get an indoation of the NFP data, while for overnight, the US Markit’s services PMI and the ISM non-manufacturing dropped in November to 54.5 (vs 55.4 expected) and 57.4 (vs 59.0) respectively but remained in expansion levels.
- US: Non-manufacturing sector grew at a slower rate in November - ISM
- US: Service sector output expansion softens to 5-month low - Markit
NZD/USD levels
- Support 0.6860/90
- Resistance 0.6910/20
0.6840 is a key support area ahead of 0.6815-20 that are guarding a break of the 0.68 handle towards the 17-month low level of 0.6780. However, the strong recovery last week as a 50% recovery left the pair neutral, (daily RSI and The Momentum indicators confirming a neutral outlook still), just below the 200-hour SMA at 0.6879. The key target to the upside stays with the 28th Nov double-top highs of 0.6942