The NZDUSD pair is having difficulty determining its next move as it approaches the crucial US data release.

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• NZD/USD struggles to find direction ahead of the key US data.

The pair currently trades last at 0.59640.

The previous day high was 0.6007 while the previous day low was 0.5939. The daily 38.2% Fib levels comes at 0.5965, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5981, expected to provide resistance.

The NZD/USD pair trades sideways below the 0.6000 barrier during the early Asian session on Friday. The US Dollar Index posts mixed results following the US economic data. The pair currently trades near 0.5965, down 0.02% on the day. Market participants await the highly anticipated US Nonfarm Payrolls due later in the American session. The figure is expected to show a 170K rise in jobs.

On Thursday, the Federal Reserve’s preferred gauge of inflation, the US Core Personal Consumption Expenditure Price Index, rose to 4.2% in July from 4.1% prior, in line with expectations. Additionally, Initial Claims fell to 228,000, falling short of the forecast 232,000 and marking the lowest number in four weeks. Continuing Claims, on the other hand, reached their highest level in six weeks.

On the Kiwi front, the ANZ – Roy Morgan Consumer Confidence for August showed that consumer confidence in New Zealand improved marginally to 85 in August from 83.7 but remained at subdued levels. However, there was more optimism among consumers regarding whether it was a good time to buy household items.

Apart from the data, the chief economist of the Reserve Bank of New Zealand (RBNZ) stated last week that policymakers would cut the OCR earlier than signaled if China experienced a more significant slowdown than the RBNZ anticipates. Investors will keep an eye on the Chinese Caixin Manufacturing PMI due later in the day. The weaker-than-expected result might exert pressure on the China-proxy Kiwi and act as a headwind for the NZD/USD pair.

Moving on, market players will closely watch the US ISM Manufacturing PMI. The figure is expected to improve from 46.4 to 47. The attention will then shift to Nonfarm Payrolls (NFP), followed by the Unemployment Rate. Traders will take cues from the data and find trading opportunities around the NZD/USD pair.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5966 at the time of writing. Pair opened at 0.5956 and is trading with a change of 0.17 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.5981, 50 SMA 0.611, 100 SMA @ 0.6144 and 200 SMA @ 0.6224.

The previous day high was 0.6007 while the previous day low was 0.5939. The daily 38.2% Fib levels comes at 0.5965, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5981, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.5928, 0.5899, 0.586
• Pivot resistance is noted at 0.5996, 0.6035, 0.6064

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