FxWirePro: NZD/USD snaps 2-day downtrend, bulls eye 200-DMA

Chart - Courtesy Trading View 

NZD/USD was trading 1.09% higher on the day at 0.6232 at around 10:05 GMT. The pair has snapped a 2-day downtrend and has edged higher from session lows at 0.6159.

The New Zealand dollar has picked significant bids as China has announced fresh stimulus to offset concerns over economic projections due to fresh Covid-19 lockdown measures. 

Focus will be on on Thursday’s China Caixin Manufacturing PMI data, which is seen lower at 48.6 vs. the prior release of 49.2.

On the otherside, US Automatic Data Processing (ADP) Employment data will be watched for impetus ahead of the key NPF report due Friday.

US labor market is expected to have added 200K fresh jobs vs. the prior release of 239K, according to the ADP report.

Some anxiety prevails ahead of the speech from Federal Reserve (Fed) chair Jerome Powell, which is due on Wednesday.

Technical bias for the pair is bullish and the major has resumed upside, snapping a 2-day downtrend. Scope for test of 200-DMA at 0.6292.