NZD/USD extends slide to 8-week lows

NZD/USD broke below 0.7165 and bottomed at 0.7148 hitting the lowest level since August 9. A stronger US dollar after the release of the latest US economic reports pushed the pair further to the downside.

The ISM non-manufacturing index rose to 57.1 in September from 51.4 the previous month and above the 53.0 of consensus. Earlier data showed a smaller-than-expected increase in private payrolls (reported by ADP) of 154K against expectations of 166K while factory orders unexpectedly climbed 0.2% in August. 

NZD/USD levels to watch  

From the lows, the pair managed to recover some lost ground and it was trading t 0.7175, still 40 pips below yesterday’s closing price and more than a hundred pips below the level it had 24 hours ago. 

The kiwi is still headed toward the second daily decline in a row and consolidating under the important 0.7200 - 0.7220 support area. To the downside, the relevant support levels might lie at 0.7100 and the 0.7050 zone (April and May highs). 

On the opposite direction, the 0.7200 - 0.7220 area now could become a key resistance area, followed by 0.7250 (Oct 3 low).