NZD/USD: looking for a break of the 0.69 handle, eyes key support

Currently, NZD/USD is trading at 0.6914, up 0.03% on the day, having posted a daily high at 0.6917 and low at 0.6910.

NZD/USD has continued in the downtrend, now testing below the 200-day smoothed sma at 0.6998. The next major level to the downside is still 0.6860 and the 23rd Dec which is still achievable considering the momentum in the greenback. The ADP report overnight set the scene as a positive prelude to this Friday's all-important nonfarm payrolls report. 

Just a reason or two to short the 'March rate hike herd'

This jobs data is what markets are pinning down as the key signal as to whether the Fed will or may not hike rates next week. However, whether the FOMC will pay attention to what is behind the headlines, such as the decrease in wages of late and indeed the increase in the unemployment due to more people participating the jobs market this year so far is yet to be seen. Meanwhile, analysts at Westpac explained that additional and more recent negative factors have been weaker dairy prices plus the RBNZ’s emphatic reminders it is on hold for a long time.

Forex today: ADP report nails dollar down, oil breaks below $50.00

NZD/USD levels

NZD/USD bears eye the 23rd Dec lows of 0.6860 and late Dec highs. 0.6860 is the key milestone support level and a break of that level will jeopardise the bullish trend's channel from late Sep 2015 lows at 0.6270. To the upside, bulls need to get above 0.7250 to put the bird back into a bullish position.