The NZDUSD pair at 0.59387 is stagnant at around 0.5943 during the subdued trading period.

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• NZD/USD remains flat around 0.5943 amid the quiet trading session.

The pair currently trades last at 0.59387.

The previous day high was 0.6015 while the previous day low was 0.5934. The daily 38.2% Fib levels comes at 0.5965, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5984, expected to provide resistance.

The NZD/USD pair trades sideways below the crucial 0.6000 barrier during the early Asian session on Tuesday. The US Dollar (USD) posts modest losses near a monthly high of around 104.10 on a quiet session as Wall Street closed for Labor Day. The pair currently trades around 0.5943, gaining 0.05% on the day.

The US economic data showed a mixed result last week. The US Nonfarm Payrolls (NFP) for August came in at 187K, beating the expectation of 170K and 157K in the previous reading. While, The Unemployment Rate dropped significantly to 3.8%, compared to the market consensus of 3.5% and 3.5% prior. The US Manufacturing PMI came in at 47.6 versus 46.4 prior and better than 47.0 expected.

Market players bet on a less aggressive Federal Reserve (Fed) stance. According to the CME FedWatch Tool, the possibility of an interest rate hold at the September meeting remains at 93%, which might cap the upside in the USD.

The New Zealand economic docket is quite empty this week and the headline surrounding the China stimulus plan might influence the Kiwi dynamic. On Monday, Chinese authorities plan to introduce more measures, including the easing of restrictions on the purchase of homes, to stimulate China’s faltering economy, according to Reuters. In response to the news, the Greenback is weakened against its rivals due to risk appetite. This, in turn, lifts the China-proxy New Zealand Dollar (NZD).

About the data, the New Zealand Terms of Trade Index improved to 0.4% in the second quarter, compared to a decline of 1.5% in the previous reading and an expected drop of 1.3%. The ANZ – Roy Morgan Consumer Confidence for August revealed last week that consumer confidence in New Zealand increased marginally to 85 in August from 83.7 in July, but remained subdued.

Looking ahead, the Chinese Caixin Services PMI for August will be released on Tuesday. The US ISM Services PMI will be due on Wednesday while Fed officials enter their blackout period ahead of the September’s Federal Open Market Committee (FOMC) meeting 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 0.5943 at the time of writing. Pair opened at 0.5946 and is trading with a change of -0.05 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.5969, 50 SMA 0.6103, 100 SMA @ 0.6138 and 200 SMA @ 0.6221.

The previous day high was 0.6015 while the previous day low was 0.5934. The daily 38.2% Fib levels comes at 0.5965, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5984, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.5915, 0.5884, 0.5834
• Pivot resistance is noted at 0.5996, 0.6046, 0.6077

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