NZD/USD off-highs, but better bid near 0.6920 post-China services

• USD, USTs trade weaker.
• Little impressed by upbeat China services PMI.
• US NFP on tap.

Despite a big beat on the Chinese services PMI data for October, the NZD/USD pair remains capped below 0.6930 levels, now consolidating the renewed uptick near the daily pivot of 0.6915.

NZD/USD Focus shifts to NFP

The Kiwi bounced-off lows just ahead of 0.69 handle in early trades and went on to hit fresh daily tops at 0.6927 levels before easing slightly amid broad-based US dollar consolidation.

The spot moved-off highs last hour, tracking the renewed weakness in its OZ counterpart, the Aussie, in response to downbeat Aus retail sales release. However, the NZD/USD pair manages to defend the bids on the back of a better sentiment towards risk assets, with the Asian stocks and oil prices trending higher.

Also, the weakness seen in Treasury yields post-Powell nomination as the next Fed Chair, keeps the sentiment underpinned around the higher-yielding currency NZD, while the retreat remains restricted also in the wake of upbeat Chinese service sector activity report.

Attention now shifts towards the all-important US payrolls data, which will shape up the tone around the greenback in the coming weeks. Also, of relevance remains the US ISM services PMI and FOMC member Kashkari’s speech due later in the NA session.

NZD/USD Levels to consider

The NZD remains supported above 0.6900 (round figure), below which 0.6888/81 (5 & 10-DMA) and 0.6818 (5-month low) are key near-term downside areas. To the topside, a test of 0.6950 (psychological levels) due on the cards, which could open doors towards 0.6985 (20-DMA).