NZD/USD bulls testing the 0.73 handle ahead of ISM data
- ISM Non-Manufacturing PMI is set to decelerate in March with a report due later on Wednesday.
- ADP employment report exceeded the market expectations with 241K new jobs added in the US economy in March.
The NZD/USD is trading at around 0.7288 up 0.43% on Wednesday as fear of global trade and global economic slowdown are back on the table. In response to Trump's tariffs, China retaliated by announcing 25% tariffs on a range of products including cars, aircrafts and soybeans.
Coming up next in the US at 14:00 GMT is the ISM Non-Manufacturing Index PMI in March which is expected to decelerate from 59.5 in February to 59, according to analysts’ forecasts. Other macroeconomic data released at the same time of the day will be the Markit services PMI, Markit composite PMI, the US factory orders and a little later at 15:00 GMT the EIA Crude Oil Stocks Change to March 30.
James Bullard, President of the Federal Reserve Bank of St. Louis will be delivering a speech at 13:45 GMT while Loretta J. Mester, the president and chief executive officer of the Federal Reserve Bank of Cleveland will be speaking at 15:00 GMT.
Earlier in the New-York session, the US ADP Employment Change in March accelerated to 241K beating analyst’s expectations at 205K. In February the report came at 235K.
The US Dollar Index (DXY), which measures the greenback relative to a basket of foreign currencies, is trading quietly close to the $90 since last Thursday (March, 29).
NZD/USD weekly chart
The NZD/USD is trading close to the high of last week and it is trading above its 50, 100 and 200-period simple moving average on the weekly chart. Whenever a market trade above the main moving averages the situation is generally seen as bullish. The NZD/USD has been consolidating in a wedge bull flag since the start of 2018. The 0.72 level has been the main support while 0.73 has been a major resistance level in the last weeks of trading.
NZD/USD Daily chart
On the daily chart, the Kiwi is testing the 50-period simple moving average dynamic resistance at 0.7287. The market is also testing March, 26 swing high.
NZD/USD 4-hour chart
Resistance is seen at 0.7304, March 26 swing high. A break above would lead to the next swing high seen at 0.7355, established on March 14. Further up, the bulls will target 0.7438 which is the high made on February, 16. Support levels are seen at 0.7240 which is the 50% Fibonacci retracement from the March, 29-April, 4 bull leg; followed by the last swing low at 0.7195.