NZD/USD extends its downside below 0.6250 following Chinese Services PMI data

• NZD/USD loses traction around 0.6242 amid the firmer USD.
• China’s Caixin Services PMI rose to 52.9 in December vs. 51.5 prior, better than expected.
• The US ADP Employment Change and weekly Initial Jobless Claims will be monitored by traders.

The NZD/USD pair extends its downside below the mid-0.6200s during the early Asian trading hours on Thursday. The downtick of the pair is bolstered by the stronger US Dollar (USD). In the absence of economic data released from the New Zealand docket, the NZD/USD pair remains at the mercy of USD price dynamics. The pair currently trades near 0.6242, losing 0.04% on the day.

The economy docket from New Zealand is quiet this week. Early Thursday, China’s Caixin Services Purchasing Managers’ Index (PMI) jumped to 52.9 in December from the November reading of 51.5, above the market, expectation of 51.6.

Despite participants’ expectations for the policy rate to be at or near its peak during this tightening cycle, the FOMC minutes made clear that the direction of monetary policy would depend on how the economy performs. That being said, the less dovish remarks lift the Greenback and act as a headwind for the NZD/USD pair.

The US ADP Employment Change and weekly Initial Jobless Claims will be released later on Thursday. The attention will shift to the highly anticipated US Nonfarm Payrolls on Friday. Also, the Unemployment Rate and Average Hourly Earnings will be released. Traders will take cues from these figures and find trading opportunities around the NZD/USD pair.