NZD/USD climbs higher toward 0.7200, eyes on key US data

NZD/USD rises sharply after closing deep in the red on Tuesday.
Improving market sentiment is helping NZD/USD push higher.
US Dollar Index loses traction ahead of ADP and PMI data.

Eren Sengezer FXStreet

The NZD/USD pair closed in the negative territory on Tuesday but didn't have a difficult time reversing its direction. As of writing, the pair was up 0.76% on a daily basis at 0.7197.

NZD capitalizes on upbeat jobs report

Earlier in the day, the data from New Zealand showed that the Unemployment Rate declined to 4.7% in the first quarter. This reading came in better than the market expectation and the previous quarter's print of 4.9% and helped the kiwi outperform its rivals. Furthermore, the Participation Rate improved to 70.4% from 70.2%.

On the other hand, the improving market sentiment is weighing on the greenback on Wednesday and allowing NZD/USD to preserve its bullish momentum. At the moment, the S&P 500 Futures are up 0.4% on the day and the US Dollar Index (DXY) is posting modest daily losses at 91.23.

If Wall Street's main indexes manage to open decisively higher, the DXY is likely to remain on the back foot in the second half of the day.

Later in the session, the ADP's monthly private sector employment report and the ISM's Services PMI data will be watched closely by market participants. On Thursday, the ANZ Business Confidence and the ANZ Activity Outlook will be released from New Zealand during the Asian trading hours.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.7195
Today Daily Change	0.0050
Today Daily Change %	0.70
Today daily open	0.7145

Trends
Daily SMA20	0.7152
Daily SMA50	0.7146
Daily SMA100	0.7162
Daily SMA200	0.6947

Levels
Previous Daily High	0.7208
Previous Daily Low	0.7115
Previous Weekly High	0.7287
Previous Weekly Low	0.715
Previous Monthly High	0.7287
Previous Monthly Low	0.6945
Daily Fibonacci 38.2%	0.7151
Daily Fibonacci 61.8%	0.7173
Daily Pivot Point S1	0.7104
Daily Pivot Point S2	0.7063
Daily Pivot Point S3	0.701
Daily Pivot Point R1	0.7197
Daily Pivot Point R2	0.725
Daily Pivot Point R3	0.7291

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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