NZD/USD plummets to 100-DMA support near 0.7135 level
|Following overnight consolidative price-action, the NZD/USD pair came under renewed selling pressure on Tuesday and tumbled to 100-day SMA support near 0.7135 region.
Late Monday comments from the Philadelphia Federal Reserve Bank President Patrick Harker drove up the US Treasury bond yields and underpinned resurgent US Dollar demand, eventually weighing on higher-yielding currencies - like the Kiwi.
Meanwhile, investors also seemed to dump the New-Zealand Dollar in anticipation of a weak outcome from the fortnightly dairy auction and hence, the release of GDT Price Index would grab investor's attention on Tuesday.
Also in focus would be a slew of speeches from various Fed officials, which would be looked upon for clues over the timing of next Fed rate-hike action ahead of this week's key event risk, the Fed monetary policy meeting minutes on Wednesday.
Technical levels to watch
A follow through selling pressure below 0.7130 level, leading to a subsequent drop below 0.7120 level, now seems to pave way for a break below 0.7100 handle and continuation of the pair’s near-term downward trajectory.
On the flip side, any recovery attempts might now confront immediate resistance near 0.7165 region above which the pair is likely to aim towards reclaiming 0.7200 handle, en-route 0.7220-25 strong hurdle.
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