The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Tuesday, increasing the price of the NZDUSD pair to more than 0.7000, ahead of the release of the U.S. ISM Services PMI news.
As of this writing, the NZDUSD pair consolidates around 0.7004. If the price continues to move upward, it might face some resistance near the given below price levels.
0.7021 – the immediate trendline resistance
0.7069 – the major horizontal resistance
0.7103 – the low of March 03, 2021
On the downside, the pair might find some support near the listed price levels.
0.6977 – the Fibonacci retracement (61.8%)
0.6945 – the lower trendline arm
0.6900 – the psychological number
U.S. ISM Services PMI News
The U.S. Institute for Supply Management (ISM) anticipates releasing numbers for the ISM Services PMI on April 05, 2021. According to economists, the ISM Services PMI might register a reading of 57.4 in March, as compared to the reading of 55.3, in the month before.
The ISM Services PMI stats reflect the overall business conditions of the non-manufacturing sector of the United States. It is worth mentioning here that the ISM Services PMI does not influence the country’s GDP as much as the ISM manufacturing PMI does. Generally speaking, a reading above 50 strengthens the U.S. Dollar (USD) against the New Zealand Dollar (NZD) indicating a bearish trend for the NZDUSD pair and vice versa.
Given a macroeconomic outlook of the pair, selling the NZDUSD pair around 0.6977 might yield some short to medium-term profits.