NZD/USD bleeds lower as the US dollar prints fresh cycle highs

• NZD/USD is under pressure again as the US dollar soars to fresh highs. 
• All eyes will now be with the NFP event on Friday while otherwise, bets are on a recovery in NZD.

NZD/USD is currently trading at 0.6984 and is a touch lower on the day after having its wings clipped again on US dollar strength. The bird slid from a high of 0.7706 to a low of 0.6965 while the greenback shot to a fresh cycle high as measured by the DXY of 92.448. 

''The Kiwi is a touch lower yet again this morning after a fairly subdued session that saw the USD DXY strengthen following the stronger than expected ADP employment print, which is a positive indicator of US payroll data due Friday night (NZT),'' analysts at ANZ Bank said. 

Private payrolls increased by 692,000 jobs last month, the ADP National Employment Report showed.

Additionally, data for May was revised lower to show 886,000 jobs added instead of the initially reported 978,000. Economists polled by Reuters had forecast private payrolls would increase by 600,000 jobs.

''Month and quarter-end rebalancing did provide some volatility, but NZD and AUD were more stable than the majors, all of which has seen the NZD outperformance on those crosses,'' the analysts explained. 

''Price action remains unusual (at least in our view), with the NZD unable to capitalise on falling US bond yields, continually lifting expectations for earlier OCR hikes here, and the ongoing rally in commodity prices. We think that’s a favourable backdrop, biasing the NZD higher, but it has been an odd sort of a week and patience may be required,'' the analysts added.