The NZDUSD currency pair, trading at 0.61499, experiences a significant drop close to 0.6140 due to the strong performance of the US Dollar.

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• NZD/USD falls sharply to near 0.6140 amid sheer strength in the US Dollar.

The pair currently trades last at 0.61499.

The previous day high was 0.6226 while the previous day low was 0.6149. The daily 38.2% Fib levels comes at 0.6197, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6178, expected to provide resistance.

The NZD/USD pair falls back swiftly to near 0.6140 as the market moods turn cautious ahead of the United States economic data. The Kiwi asset faces selling pressure amid sheer strength in the US Dollar Index (DXY) ahead of the Manufacturing PMI to be reported by the Institute of Supply Management (ISM).

S&P500 is expected to open on a bearish note following negative cues from overnight futures. A stock-specific action is expected in the US equities amid Q2 corporate earnings season. The US Dollar Index climbs strongly above 104.20 as global recession fears deepen.

Going forward, investors will focus on US ISM Manufacturing PMI and JOLTS Job Openings data. As per the estimates, Manufacturing PMI jumped to 46.5 from the former release of 46.0 but remained in a contraction phase. New Orders Index that demonstrates forward demand is seen declining to 44.0 against the former release of 45.6.

Meanwhile, JOLTS Job Openings data would drop to 9.62M against May’s release of 9.824M. The economic data would provide cues about labor demand. The US labor market is facing the headwinds of labor shortages. Higher job openings would elevate labor demand further.

On the New Zealand Dollar front, investors are awaiting the Q2 Employment data, which will release on Wednesday. As per the estimates, the New Zealand labor market was added by fresh 0.5% payrolls. Quarterly Labor Cost Index is seen rising by 1.2% vs. the prior release of 0.9%. Higher Employment costs could elevate inflationary pressures further. The Unemployment Rate is expected to rise to 3.5% against the former release of 3.4%.

An increase in the labor cost index could prompt the Reserve Bank of New Zealand (RBNZ) to raise interest rates further.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.615 at the time of writing. Pair opened at 0.6209 and is trading with a change of -0.95 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6232, 50 SMA 0.6166, 100 SMA @ 0.6198 and 200 SMA @ 0.6222.

The previous day high was 0.6226 while the previous day low was 0.6149. The daily 38.2% Fib levels comes at 0.6197, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6178, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6163, 0.6118, 0.6086
• Pivot resistance is noted at 0.624, 0.6272, 0.6317

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