The NZD/USD pair gathered some bullish momentum in the NA session and rose above 0.69 to refresh its session high at 0.6905. At the moment, the pair is trading a few pips below that session high and is recording a daily gain of 0.5%.
Earlier in the Asian session, the pair dropped to mid 0.68’s, but the selling pressure couldn’t sustain amid an optimistic NZ Treasury report and the low trading volume due to the Labor Day holiday. The recent upsurge was fueled by the weak macro data from the United States, which revealed that the PCE price index, Fed’s favorite inflation gauge, contracted by 0.2% in March and dropped to 1.8% on a yearly basis. Other data showed that the Markit Manufacturing PMI in April remained unchanged at 52.8, suggesting that the sector continues to expand.
In about 10 minutes, ISM’s manufacturing PMI data and the construction spending figures will be released. Following the data, investors will look for fresh catalysts in U.S. Secretary of Treasury Steve Mnuchin’s remarks at the top of the hour.
The pair faces the first technical support at 0.6845/50 (10-month/daily low) ahead of 0.6800 (psychological level) and 0.6705 (May. 31 low). To the upside, resistances could be seen at 0.6940 (10-DMA), 0.7000 (psychological level) and 0.7080 (100-DMA).