NZD/USD lethargic below 0.70 ahead of key events

The NZD/USD is moving sideways in a tight channel, having posted a daily high at 0.6989 and low at 0.6959. As of writing, the pair is at 0.6977, up 0.16% on the day.

Although the pair seemed to be under pressure following the weak Chinese data during the Asian session, it wasn't able to extend the bearish momentum as investors chose to remain on the sidelines throughout the day. Even the positive data from the United States couldn't bring any volatility into the market.

• China 's Caixin March Services PMI: A big miss on expectations

After yesterday's upbeat private sector employment growth data, today's weekly jobless claims recorded the largest weekly drop in nearly two years. Both of these data ramp up the expectations for a positive NFP reading tomorrow, but the market reaction was dismal as the US Dollar Index continued to stick to the rangebound theme around 100.50.

• US: Initial jobless claims declined 25,000 to a seasonally adjusted 234,000

U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, start their two-day meeting today and until the headlines start to cross the wires, we may continue to see a subdued trading action across the majors.

Technical outlook

To the upside, the pair could encounter the first hurdle at 0.7000 (psychological level) before 0.7070 (50-DMA) and 0.7150 (200-DMA). On the other side, supports could be seen at 0.6940 (Apr. 5 low), 0.6890 (Mar. 9 low) and 0.6860 (Dec. 23 low).

• NZD/USD a sustained break below 0.6950 is unlikely – UOB