NZD/USD: where next in the absence of data?

NZD/USD remains capped on pops higher.
NZD/USD has eyes for a test of the 100-D SMA at 0.6869.

Ross J Burland FXStreet

NZD/USD has been holding its own, as analysts at ANZ explained and has been pretty much glued to the 0.6880 level throughout the NY and early Asian shift, unable to attract interest either way in the absence of domestic data since the US ADP report that sets up a solid foundation for this week's showdown in the nonfarm payrolls report.

NZD/USD: Kiwi holding its own - ANZ

The dollar has been firming again and commodities have traded heavy on Wednesday, weighing on the bird and the Aussie, pushing the Kiwi through the 10 & 21-Day SMAs where the pair hovered near 0.6870 late in the NY shift. There are no major NZ data or event risks in Asia today and instead, the AU trade data might impact via AUD/NZD and subsequently send some flows through NZD/USD.

Recent US data:

US: Non-manufacturing sector grew at a slower rate in November - ISM
US: Service sector output expansion softens to 5-month low - Markit
US: Private sector employment increased by 190,000 jobs in November - ADP

NZD/USD levels

Support 0.6860
Resistance 0.6920

Technicals lean bearish, with the long upper wicks on the recent daily candles while the daily RSI rolls over. 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), at just below the 200-hour SMA at 0.6879 where the pair is bound to. The key target to the upside stays with the 28th Nov double-top highs of 0.6942 while 0.6820, if broken, could be a catalyst for 30th May 2016 territory on the wide down at 0.6680.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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