NZD/USD turning into a correction of 0.6580 uptrend

NZD/USD has continued to drift lower below the 0.69 handle from where the price dumped to 0.6833 previous lows.

NZD/USD was sold off on the back of a solid jobs report in the nonfarm payrolls last week and a surprise positive in the US ISM manufacturing data as well on the same day being another encouraging signal that the slowdown in the manufacturing sector is now abating.

"With the drag from the manufacturing sector beginning to ease, the market's focus will shift to the release tomorrow of the latest ISM non-manufacturing survey to see if it provides a similar signal that economic growth is likely to pick back up in Q2 after what appears like two quarters of more subdued growth at the turn of the year," explained analyst at Bank of Tokyo Mitsubishi.

NZD/USD levels

NZD/USD has rallied in recent weeks from 0.6668 the low on 27th March to recent highs of 0.6966. However, now making fresh lows after breaking below the 20 4hr sma at 0.6894, the ascending daily channel from 0.6347 Jan lows and the more recent rally from 0.6580 are now being corrected on the 0.68 handle. 0.6800 might be a strong level of support with the 50 sma at 0.6804.