NZD/USD edges higher to 0.7000 area after US ADP jobs report
- NZD/USD is posting modest daily gains on Wednesday.
- US Dollar Index continues to move sideways above 93.00.
- Private sector employment in US increased by 517,000 in March.
The NZD/USD pair extended its rebound and touched a daily high of 0.7005 in the early trading hours of the American session. As of writing, the pair was trading at 0.6997, rising 0.22% on a daily basis.
ADP employment data fails to boost USD
The monthly data published by the Automatic Data Processing (ADP) Research Institute showed on Wednesday that employment in the US private sector rose by 517,000 in March. Although this reading came in lower than the market expectation of 550,000, it was still a big improvement from February's increase of 176,000.
Nevertheless, the greenback showed no immediate reaction to this data and the US Dollar Index (DXY) was last seen posting small daily losses at 92.23.
Later in the day, the ISM Chicago's Purchasing Managers' Index data for March and February Pending Home Sales will be looked upon for fresh impetus. Additionally, US President John Biden will unveil the $2 trillion infrastructure plan at 2020 GMT.
In the meantime, the S&P 500 Futures are up 0.16% on the day, suggesting that the DXY could have a tough time regaining its traction if Wall Street's main indexes start pushing higher in the second half of the day.
On Thursday, the only data release from New Zealand will be Roy Morgan Consumer Confidence Index for March.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
