NZD/USD: Key support stands at 0.5560

New Zealand Dollar rebounds towards 0.5600 against the US Dollar following a retest of the 18-month low at 0.5564
Majorities in both the House and the Senate go to the Democrats.
October’s US ADP Employment Change and ISM Services PMI releases are in focus for investors.

An early rebound in the New Zealand Dollar (NZD) remains intact near 0.5600 against the US Dollar (USD) in Wednesday’s European trading session. The Kiwi pair has recovered after retesting its 18-month low of 0.5564.

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Uncertainty is expected to persist over the Kiwi pair’s outlook, with the US Dollar showing signs of a rebound following the United States (US) midterm election results. The Democrats secured majorities in both the House and the Senate.

Despite a substantial recovery from the session low of 101.25, the US Dollar Index (DXY) is trading near 101.55 at the time of writing, down 0.34%. The index tracks the Greenback against a basket of six major currencies.

Over the past few weeks, the US Dollar had lagged as market participants had already factored in a Democratic victory in both chambers of the federal legislature.

Next on investors’ radar is October’s US ADP Employment Change release, due at 13:15 GMT. The US agency is expected to report that private employers added 69K workers, compared with 90K in September.

Attention will then turn to October’s US ISM Services PMI, also scheduled for release later in the day. Expectations place the Services PMI at 54.8, slightly below the preceding reading of 54.9.

NZD/USD Technical Analysis: Can Bearish Pressure Ease?

A bearish near-term bias persists on the daily chart, where NZD/USD is trading at 0.5601, below the 20-period exponential moving average (EMA) of 0.5645. As long as the pair stays beneath this short-term EMA, recovery attempts are likely to face difficulty. Meanwhile, a Relative Strength Index (RSI) reading of 37 points to continuing downward pressure, though it has not reached oversold extremes.

For the current bearish bias to ease and a more substantial recovery to develop, the pair would need a sustained move above initial resistance at the 20-period EMA near 0.5645. On the downside, key support lies at the 18-month low of 0.5564. A decisive breach of 0.5564 would leave 0.5500 exposed.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Which Economic Indicator Is in Focus?

What Does ADP Employment Change Measure?

Published by Automatic Data Processing Inc., the largest payroll processor in the US, ADP Employment Change tracks changes in the number of people employed in the US private sector. An increase generally supports consumer spending and stimulates economic growth. Accordingly, markets traditionally view a high reading as bullish for the US Dollar (USD) and a low reading as bearish.

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Upcoming release: Wed 04 Nov 2026 13:15

Release frequency: Monthly

Consensus estimate: 69K

Prior reading: 90K

Data source: ADP Research Institute

Why do traders track this report?

An employment reading above consensus typically supports the USD. This is one reason FX traders monitor the ADP report: as with Nonfarm Payrolls (NFP), sustained, robust employment growth adds to inflationary pressures and raises the likelihood of a Fed interest rate increase. ADP is America’s largest payrolls provider, and traders frequently view its employment figures as an early indication of the Bureau of Labor Statistics release on Nonfarm Payrolls, usually published two days later. The two series are closely correlated and show considerable overlap, although the gap between them can be substantial in individual months.