NZD/USD eases from 1-month tops on upbeat US ISM PMI

   •  The USD tumbled in reaction to the dismal US ADP report and provided a strong boost to the pair.
   •  Upbeat US ISM non-manufacturing PMI helped ease the USD bearish pressure and cap gains.

The NZD/USD pair maintained its strong bid tone through the early North-American session and spiked to one-month tops in the last hour, albeit retreated few pips thereafter.

The pair built on its recent recovery move and continued gaining positive traction for the fourth consecutive session on Wednesday amid the prevailing US Dollar selling bias, further aggravated by dismal ADP report.

The data, showing that the US private sector employers added only 27K new jobs in May, reinforced market expectations that the Fed might be forced to deliver interest rate cut(s) by the end of this year. 

This was evident from collapsing US Treasury bond yields, which kept exerting some downward pressure on the greenback and provided an additional boost to the pair's ongoing positive momentum.

Meanwhile, a positive mood around risk-associated space - as depicted by bullish trading sentiment around equity markets further benefitted perceived riskier currencies - like the Kiwi.

However, the better than expected release of the US ISM non-manufacturing PMI, coming in at 56.9 for May as compared to 55.5 expected, provided a much-needed respite for the USD bulls and kept a lid on any further up-move.

Technical levels to watch