NZD/USD breaches 0.7400 amid risk-off, poor China services

The NZD/USD pair is on a declining trend so far this week, after having failed to sustain near multi-month tops of 0.7560.

NZD/USD awaits US NFP for fresh direction

The Kiwi extends its bearish momentum into third day today, as sentiment remains dampened by downbeat Chinese services PMI and also on recent series of weak NZ fundamentals, including the employment data.  

China’s Caixin Services PMI eases in July, misses expectations

Further, moderate risk-aversion persisting across the financial markets in Asia also collaborated to the ongoing weakness in the higher-yielding NZD. The spot also faced selling pressure amid a solid comeback staged by US dollar against its main rivals from multi-month troughs.

Markets now look forward to a fresh batch of economic releases due to be reported from the US docket later tonight, with the ISM services PMI and factory orders closely eyed.

NZD/USD Levels to consider                                                                              

NZD/USD breached 0.7400 levels, with 0.7350 (psychological levels) still guarding 0.7323 (50-DMA) and a break back below 0.7300 (round figure) are key near-term downside areas. To the topside, a test of 0.7424 (daily pivot) due on the cards, which could open doors towards 0.7461/69 (5 & 10-DMA).