NSD/USD drops to fresh weekly lows below 0.70 handle
|The NZD/USD pair extended disappointing NZ trade data-led bearish slide and slipped below the key 0.70 psychological mark to fresh weekly lows.
The pair came under some renewed selling pressure on Friday after the NZ trade deficit narrowed to NZ$18 million for February. Although the reading was much better-than a revised $257 million deficit recorded in the previous month but was well below market expectations for a surplus of $160 million and weighed heavily on the New-Zealand Dollar.
Also collaborating to the pair's downslide was the ongoing up-move in the US treasury bond yields, which underpinned the US Dollar recovery move on Friday and was driving flows away from higher-yielding currencies - like the Kiwi.
Later during early NA session, comments from Chicago Fed President Charles Evans might provide some impetus ahead of the US economic docket, featuring the release of durable goods orders for the month of February.
Meanwhile, the pair's near-term trajectory would remain dependent on the outcome of a vote on Trump's healthcare bill, now scheduled between 1800-2000 GMT.
Technical levels to watch
Immediate support is pegged near 0.6980-75 area, below which the downslide could get extended back towards mid-0.6900s ahead of 0.6920 important support. On the upside, any recovery attempt above 0.7015 level now seems to confront strong resistance near 0.7040 region, which if cleared is likely to trigger a short-covering rally back towards multi-week highs resistance near 0.7075-80 region, en-route the 0.7100 handle.
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