• The New Zealand Dollar’s rebound failed at 1.6175.
• The USD remains bid ahead of the ADP report.
• NZD/USD is forming an H&S pattern with the neckline at 1.6120.

New Zealand’s dollar remains unable to put a significant distance from the 1.6120 support level tested on Tuesday with upside attempts limited below 0.6175 so far.

US ADP Employment on focus

The moderate risk appetite favours the Kiwi, although the uptick on US Treasury yields maintains the Dollar buoyed on Wednesday, ahead of the release of the US ADP employment report.

Tuesday’s data offered a mixed picture, with the US ISM showing better than expected readings although the JOLTs Job Openings confirmed that the labour market is cooling.

The Technical picture shows the longer-term rally losing steam, with the recent price action forming a Head and Shoulders figure, often a sign of a trend change.

The neckline of the mentioned H&S is at 0.6120, with the next support levels at 0.6050 and 0.6000. Resistances are 0.6220 and 0.6340.

Technical levels to watch