NZD/USD consolidates below 0.5800 ahead of US data-packed day

The NZD/USD pair trades in a tight range around 0.5785 during the late Asian trading session on Wednesday. The Kiwi pair meanders as the US Dollar (USD) trades calmly ahead of a slew of United States (US) economic data, releasing in the North American session.

During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades almost flat near 98.55.

Later in the day, US agencies will report ADP Employment Change and ISM Services PMI data for December, and the JOLTS Job Openings data for November. Investors will pay close attention to employment-related data as it would have a significant impact on the Federal Reserve’s (Fed) monetary policy outlook.

The ADP is expected to show that private employers added 45K workers against firing 32K payrolls in November. Meanwhile, new job postings by overall employers are expected to come in at 7.64 million, almost in line with October’s reading of 7.67 million.

Signs of improving labor demand would weigh on market expectations for more interest rate cuts by the Fed in the near term. In 2025, the Fed reduced interest rates by 75 basis points (bps) to 3.50%-3.75% to support weakening job market conditions.

This week, the New Zealand Dollar (NZD) will be influenced by China’s Trade Balance data for December, which will be released on Thursday. The impact of China’s will be significant on the Kiwi dollar, given that the New Zealand (NZ) economy relies heavily on its exports to Beijing.