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The New Zealand Dollar’s rebound failed at 0.6175.
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The USD remains bid ahead of the ADP report.
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NZD/USD is forming an H&S pattern with the neckline at 0.6120.
New Zealand’s dollar remains unable to put a significant distance from the 0.6120 support level tested on Tuesday with upside attempts limited below 0.6175 so far.
US ADP Employment on focus
Moderate risk appetite favors the Kiwi, although a rise in US Treasury yields on Wednesday ahead of the release of the US ADP employment report kept the dollar buoyant.
Tuesday’s data offered a mixed picture, with the US ISM showing a better than expected reading although JOLTs job openings confirmed that the labor market is cooling.
The technical diagram shows that a long-term rally has lost steam, with recent price action forming a head and shoulders pattern, often a sign of a trend reversal.
The neckline of the mentioned H&S is at 0.6120, with the next support levels at 0.6050 and 0.6000. Resistances are 0.6220 and 0.6340
