- NZD/USD erased losses and swung back into the positive territory after upbeat China services PMI.
- A positive Chinese services PMI print followed the release of upbeat Chinese Caixin manufacturing PMI yesterday, lifted sentiment around the antipodeans.
- USD price-action and broader market sentiment will continue to have a significant influence on the pair.
- Upside maybe limited as USD remains supported by upbeat US data and FOMC minutes.
- Technically, the pair faces stiff resistance at 200-DMA at 0.7104. Decisive breakout above could see further upside.
- Focus now on US ADP jobs and unemployment claims data slated for release in the NA session for further impetus.
Support levels - 0.7104 (200-DMA), 0.7101 (5-DMA), 0.7061 (100-SMA)
Resistance levels - 0.7169 (50% Fib retrace of 0.7558 to 0.67804 fall), 0.7190 (Falling Trendline), 0.7261 (61.8% Fib)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-hovers-around-200-DMA-at-07104-breakout-to-see-further-upside-1076181) is progressing well.
Recommendation: Hold for upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 16.2101 (Neutral), while Hourly USD Spot Index was at -21.9723 (Neutral) at 0610 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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