NZD/USD extends daily rally, closes in on 0.7100 ahead of US data
- Upbeat employment data from New Zealand boosts NZD on Wednesday.
- US Dollar Index continues to fluctuate around 92.00 for the third straight day.
- Focus shifts to ADP Employment Change and ISM Services PMI data from US.
After closing in the positive territory on Tuesday, the NZD/USD pair gained traction during the Asian trading hours on Wednesday and reached its highest level in nearly a month at 0.7084. As of writing, the pair was up 0.88% on the day at 0.7076.
NZD capitalizes on strong labour market report
The impressive jobs report from New Zealand provided a boost to the NZD. Statistics New Zealand reported on Wednesday that the Unemployment Rate declined to 4% in the second quarter from 4.6% in the first quarter. Additionally, the Employment Change in the same period rose by 1% on a yearly basis, surpassing the market expectation for an increase of 0.7%.
On the other hand, the US Dollar Index continues to move sideways around 92.00 for the third straight day on Wednesday, allowing the kiwi's market valuation to drive NZD/USD's action.
Later in the session, the ADP Employment Changed and the ISM Services PMI data from the US will be looked upon for fresh impetus. In the meantime, S&P Futures are posting small daily losses, suggesting that the USD could continue to stay resilient against its rivals if the market mood remains cautious in the second half of the day.
Technical levels to watch for