NZD/USD tumbles to 0.69 neighborhood post-ADP, ISM and FOMC next

The NZD/USD pair extended its sharp retracement from six day tops and dropped to 0.6900 neighborhood following the release of US ADP report.

Spot held near the lower end of daily trading range after ADP report showed private-sector employment slowed in April, with news job addition of 177K as compared to 255K in March (revised lower from 263K reported earlier). 

The reading was slightly better-than 175K anticipated and helped the US treasury bond yields to reverse early losses. Rising bond yields eventually benefitted the key US Dollar Index to hold on to its daily gains, near the 99.00 handle, and was seen weighing on higher-yielding currencies - like the Kiwi. 

Meanwhile, market seems to have fully digested today's upbeat NZ jobs report, with the pair now at the mercy of sentiment surrounding the greenback and bond yield dynamics.

Today's US economic docket also features the release of ISM non-manufacturing PMI, which is unlikely to have any major impact on the pair's movement heading into today's big event risk - FOMC decision.

Technical levels to watch

A follow through retracement below the 0.6900 handle should open room for continuation of the pair's downward trajectory towards 0.6860 intermediate support before eventually breaking below last week's multi-month lows and head towards testing 0.6830 support.

On the flip side, 0.6935 level now seems to act as immediate hurdle, above which the pair is likely to aim back towards 0.6960-65 resistance (session tops) en-route 50-day SMA hurdle near the key 0.70 psychological mark.