FxWirePro: NZD/USD extends sideways at 200-DMA support, focus on US NFP data for impetus

Chart - Courtesy Trading View 

NZD/USD was trading largely unchanged at 0.6294 at around 11:45 GMT. The pair is extending sideways grind above 200-DMA, technical bias is neutral.

Hopes for China's emergence from the COVID-19 pandemic keep sentiment buoyed, supporting the antipodeans.

On the data front, consecutive drop in US ISM Manufacturing PMI data on Wednesday weighed on the dollar.

US Manufacturing PMI dropped to 48.4 vs. the expectations of 48.5 and the former release of 49.0, recorded as the lowest reading since May 2000.

Focus now on Friday’s US Nonfarm Payrolls (NFP) data, expected to add fresh 200K payrolls in December against 263K reported earlier. The Unemployment Rate is seen unchanged at 3.7%.

Later in the day investors will look after Automatic Data Processing (ADP) Employment Change data, which is seen higher at 150K against the prior figure of 127K.

Upbeat US payroll data would stoke expectations for the continuation of hawkish policy by the Fed and could weigh on the pair.

200-DMA is major support at 0.6222. Break below will negate any further upside in the pair. Next major support lies at daily cloud at 0.6109.