NZD/USD chart - Trading View
NZD/USD was trading largely muted after hitting session high at 0.6949 and low at 0.6908.
Global risk sentiment got an additional boost after the Senate voted 50-48 to extend the debt ceiling until early December and avoid a default on the US government debt.
Further, upbeat China Services PMI data which rose to 53.4, indicated a sharp expansion in the business activity in September.
The kiwi erases upbeat China data and risk-on associated gains and slips lower as markets await key NFP data.
Caution seen ahead of US NFP report which will influence market expectations about the likely timing of the Fed's tapering plan.
The US dollar remains bid ahead of the NFP jobs report, which looks likely to confirm assumptions that the Fed will start to normalize monetary policy in November.
NZD/USD grinds lower in sloping channel pattern. Price action is capped below cloud and 21-EMA.
Scope for further weakness. Break above 200H MA will change near-term dynamics. Decisive break above cloud required for upside continuation.
