NZD/USD: Kiwi is vulnerable below 0.7030

• The US ISM non-manufacturing PMI decelerated in April to 56.8 versus the forecast of 58.1.
• The NZD/USD is threatening to break the 0.7030 intraday support.

The NZD/USD is trading up 0.4% at around 0.7030 as the US Dollar bulls are taking a nap after the rally. Overnight, the US Federal Reserve Bank left rates on hold and said that the recent uptick in inflation will justify the gradual policy normalization.

Freshly released, the ISM (Institute for Supply Management) non-manufacturing PMI decelerated in April to 56.8 compared with the forecast of 58.1 and the kiwi is now threatening to reverse its intraday uptrend above 0.7030. 

The next event which is likely to provide much volatility across markets is the Non-Farm Payroll and the Hourly Average Earnings slated on Friday at 12:30 GMT. 

Earlier in the US session, the US trade balance came in at minus $49.0 Billion versus $50.0 billion forecast in March while the US initial jobless claims, in the week ending April 27, came in above expectation at 211K against 225K expected by analysts.

NZD/USD 4-hour chart

The main trend is bearish and support is seen at 0.6986 cyclical low and at 0.6822 swing low while resistance is seen at 0.7050 figure and 0.7096 swing high.