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Kiwi domination!

Thanks to a better-than-expected quarterly jobs report, Kiwi was able to make pips rain across the board. Can the bulls maintain their momentum today?

Before we look at the setup, you should first see the list of market-moving headlines during the Asian session:

Major FX Pairs Price Performance from MarketMilk
Major FX Pairs Price Performance from MarketMilk

Upcoming Potential Catalysts on the Economic Calendar:

  • Spain’s services PMI at 7:15 am GMT
  • Italy’s services PMI at 7:45 am GMT
  • France’s final services PMI at 7:50 am GMT
  • Germany’s final services PMI at 7:55 am GMT
  • Eurozone’s final services PMI at 8:00 am GMT
  • U.K.’s final services PMI at 8:30 am GMT
  • Eurozone’s retail sales at 9:00 am GMT
  • BOJ Governor Kuroda to give a speech at 12:00 pm GMT
  • U.S. ADP report at 12:15 pm GMT
  • U.S. ISM non-manufacturing PMI at 2:00 pm GMT

What to Watch: NZD/USD

NZD/USD 1-hour Forex Chart
NZD/USD 1-hour Forex Chart

A quick look at today’s economic calendar tells us that we’ll be seeing a bunch of services PMIs over the next couple of hours.

Unless we see notable hits or misses, though, then these releases will likely factor in the overall market sentiment instead of serving as individual catalysts.

If today’s risk-friendly vibe extends to the London session, then we could see NZD/USD extend its intraday gains. Specifically, the currency pair could head to the .6700 psychological handle near last week’s highs.

But what if the bulls are already exhausted? Take note that NZD/USD has already moved its full average daily ATR earlier today.

The 1-hour chart also tells us that NZD/USD is trading near a 50% Fib retracement, the 100 and 200 SMAs, AND the retest of a broken ascending channel support.

If risk appetite weakens before the U.S. ADP report and non-manufacturing PMIs are released, then NZD/USD could drop back down to its weekly lows below .6600.