The NZD/USD pair has dropped close to the critical support level of 0.6300 during Tuesday’s New York session, following selling pressure above the significant resistance of 0.6350. The Kiwi has weakened as the US Dollar reaches a new weekly high, with investors adopting a cautious stance ahead of important US economic data.
Market participants are closely monitoring this data, as it will shape expectations regarding the Federal Reserve's interest rate decisions. Today, attention is on the US ISM Manufacturing PMI for September and the JOLTS Job Openings data for August, both set to be released at 14:00 GMT.
The ISM Manufacturing PMI is projected to show a slight improvement to 47.5 from 47.2 in August, indicating continued contraction in the manufacturing sector. Meanwhile, job openings are expected to remain steady, with an anticipated count of 7.67 million.
Looking ahead, the upcoming US ADP Employment Change, ISM Services PMI, and Nonfarm Payrolls (NFP) data for September will be critical.
In the Asia-Pacific region, the outlook for the New Zealand Dollar appears positive due to China's significant economic stimulus efforts. Notably, New Zealand is a key trading partner of China.
Despite the decline in NZD/USD after failing to hold above the 0.6350 resistance, the near-term outlook for the Kiwi remains optimistic, as the 20-day Exponential Moving Average (EMA) around 0.6250 is trending upward.
The 14-day Relative Strength Index (RSI) has slipped into the 40.00-60.00 range, indicating a loss of momentum. A potential rebound could occur if the asset breaks above the December 2023 high.
