NZD/USD clings to stellar NZ jobs-led strong recovery gains beyond 0.6900 handle

   •  Upbeat NZ jobs data help stage a solid recovery. 
   •  Focus shifts to US macro data and FOMC decision. 

The NZD/USD pair consolidated strong NZ jobs report-led sharp recovery gains to one-week tops and was seen oscillating in a narrow trading range around the 0.6900 handle.

Today's blockbuster quarterly NZ employment report, showing unemployment rate dropping to 4.6% and the number of employed people rising 2.2% q-o-q, provided a much-needed respite for the NZD bulls and helped the pair to stage a solid recovery from closer to over 5-month lows. 

Meanwhile, the release of mostly in-line with expectations Chinese Caixin manufacturing PMI print failed to provide any additional boost, with short unwinding trade acting as an exclusive driver of upsurge on Wednesday. 

However, a follow-through uptick in the US Treasury bond yields and a modest US Dollar strength capped additional gains for higher-yielding currencies - like the Kiwi.

Traders would now take cues from important US macro data - ADP report on private sector employment and ISM manufacturing PMI, while key focus would remain on the FOMC statement, due later during the NY trading session. 

Technical levels to watch

A follow-through buying interest has the potential to continue lifting the pair towards 0.6950-60 intermediate resistance en-route the key 0.70 psychological mark. On the downside, any retracement back below the 0.6900 handle now seems to find support at 0.6875 horizontal level, which if broken would turn the pair to head back towards retesting 0.6830 intermediate support before eventually falling to the 0.6800 handle.