NZD/USD confined in a narrow range, eyeing US ISM for fresh impetus

The NZD/USD pair continues to seesaw between tepid gains and minor losses, struggling for a firm direction ahead of US ISM manufacturing PMI.

Currently trading around 0.7265-70 band, the pair has been confined with a narrow trading band between 0.7300 resistance and 50-day SMA support as traders seem to await for fresh impetus from this week's important macro releases. From the US, the release of NFP on Friday will take the centre stage, while from New-Zealand Tuesday's release of GDT price index would be the key driver for the pair's immediate momentum. 

However, given that the markets already seems to have discounted the possibilities of additional easing by RBNZ at its meeting in November, any drop might now be short-lived and is likely to find strong buying interest at lower levels. 

In the meantime, today's release of US ISM manufacturing PMI might help traders to grab some short-term trading opportunities. From technical perspective, it would be prudent to wait for a sustained move above 0.7300 handle or a decisive break below 50-day SMA support to confirm the pair's near-term trajectory.

Technical levels to watch

On the downside, immediate support is seen near 0.7255-50 region marking 50-day SMA below which the pair is likely to turn vulnerable to head back towards testing 0.7200 handle with 0.7220 level acting as intermediate support.

On the flip side, strong bullish momentum above 0.7300 handle is likely to lift the pair immediately towards 0.7330 resistance before the pair eventually darts towards its next major hurdle near 0.7350-55 region.