NZD/USD flirting with lows, focus remains on ADP report

The NZD/USD pair held weaker through the mid-European session and is currently placed at near session lows around 0.7425-20 region ahead of the US ADP report.

Tuesday's disappointing GDT Price Index, showing a contraction in daily prices, aggravated the pair's early retracement move from the 0.7525-30 supply zone. The selling pressure remained unabated on Wednesday in wake of mixed NZ jobs report. 

Adding to this, a modest pickup in the US Treasury bond yields, which although has failed to revive the US Dollar demand, was still seen weighing on higher-yielding currencies - like the Kiwi, and collaborated to the heavily offered tone surrounding the major, for the second consecutive session. 

The pair, however, has managed to hold its neck above the 0.7400 handle as traders seemed reluctant to place fresh aggressive bets ahead of the release of ADP report on the US private sector employment, which should drive expectations from Friday's official NFP print and help grab some short-term trading opportunities. 

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Technical levels to watch

Bears would be eyeing for a decisive break through the 0.7400 handle, below which the pair is likely to accelerate the fall towards its next major support near 0.7370-65 horizontal zone. Alternatively, any up-move now seems to confront fresh supply near the 0.7450-55 region, above which the pair is likely to make a fresh attempt to move past 0.7480 level and aim towards reclaiming the 0.75 psychological mark.