NZD/USD turns negative, drops to session low ahead of US ISM

After breaking-out of the weekly trading range, the NZD/USD pair rose to 4-day high level of 0.7277 but reversed all of its gains and turned back lower to currently trade at a fresh session low near 0.7235 ahead of the release of US ISM PMI print. 

Earlier on Thursday, the pair rose as better-than-expected official Chinese manufacturing PMI data negated a weaker-than-expected report from New-Zealand that revealed a sharp drop in the price of internationally traded goods during second quarter of 2016.

However, Fed rate-hike prospects continued supporting the upbeat sentiment surrounding the greenback and restricted the pair to build on to early gains. Adding to this, the release of mostly in-line with estimates weekly jobless claims data from the US attracted fresh selling pressure and dragged the pair back to the weekly trading range. 

Traders now turn their attention to the release of US ISM manufacturing PMI for the month of August, which if could provide an additional leg of up-move for the greenback and continue dragging the pair lower. 

Technical levels to watch

Immediate downside support is seen at 0.7215-10 region, which if broken decisively is likely to accelerate the slide immediately towards 50-day SMA support near 0.7175 region. On the upside, 0.7250 level now seems to act as immediate resistance, which if cleared should boost the pair beyond session high resistance near 0.7280 towards reclaiming 0.7300 handle.