NZDUSD trades lower for the second day in a row after robust ADP Employment data. The United States ADP Employment Change registered at 202K, topping expectations of 160K in December.
The New Zealand NZIER Business Confidence (quarter over a quarter) came in at -40% for the third quarter well below the previous reading of -34% just to add to Kiwi lower. Positive news for NZD came from New Zealand’s GlobalDairyTrade auction, that saw an increase in prices for all products, while the headline index came up 2.8%.
NZDUSD gives up 0.03% at 0.6639 having recovered earlier heavy losses. The positive momentum for NZDUSD is intact despite the two-day correction. Bears need a break below the daily low at 0.6616 in order to gain some momentum. If the pair breaks below the next support stand at 0.6596 the low from December 26th. If the pair breaks below the 200-day moving average at 0.6518 might cancel the bullish momentum.
On the other hand, the initial resistance for NZDUSD stands at 0.6671 the daily high. In case the bulls break above then the next target would be at 0.67 the high from January 3rd. More pressure would be met at 0.6755 the recent high (31-12-2019).
On the downside, first support will be met at 0.6703 the daily low. In case that the pair breaks below, the next support zone stands at 0.6624 the December 26th low. The December rally might be cancelled only if NZDUSD breaches the 200-day moving average at 0.6522.