Kiwi drifting lower gently after huge up day Wednesday; 0.7930 is hurdle

FXstreet.com (Barcelona) - The New Zealand Dollar / US Dollar cross (NZD/USD) had the biggest single up day in more than a month Wednesday as the DXY was in correction mode and nearly everything in the Asia-Pacific region caught a bid from good Chinese data.

NZD/USD had dual tailwinds from a DXY pullback and a Chinese surprise

Early Wednesday, the HSBC Services PMI came out better-than-expected and sent an already short-term bubbly Asia-Pacific region higher. The positive energy for regional crosses like the NZD/USD just climbed further when the DXY started to pull back after the Fed’s Beige Book Survey failed to re-ignite a tired greenback.

Thursday will bring about a flurry of data points out of the US including:

• US ADP Employment Change;
• US Weekly Jobless Claims;
• US Non-Farm Productivity & Labor Costs;
• US Factory Orders;
• US ISM Non-Manufacturing PMI;
• A potentially informative speech by Fed’s Narayana Kocherlakota

Technical outlook for NZD/USD

Technicians identify short-term resistance for NZD/USD at 0.7933 and 0.7979 (both horizontal lines). Short-term support comes in at 0.7850 and 0.7800 (also horizontal lines).