NZD/USD reverses tepid recovery gains, US GDP awaited
|Having posted a session high near 0.6890 region, the NZD/USD pair ran through some fresh offers and drifted into negative territory for the fifth consecutive session.
The pair extended its bearish slide through the course of current trading week and is now headed back to nearly 10-month lows touched in the previous session, despite of the prevalent negative sentiment surrounding the greenback.
In fact, the key US Dollar Index has now dropped back closer to 5-month lows touched earlier this week and hence, the latest leg of the pair's downfall in the past hour or so could be solely attributed to rising treasury bond yields, which tends to drive flows away from higher-yielding currencies - like the Kiwi.
Meanwhile, the recent disappointment from incoming US macro docket has been pointing to a phase of economic slowdown. Hence, further downslide remained limited amid expectations of yet another disappointment from the quarterly growth numbers, due for release in a short while from now.
• US: Q1 GDP release likely to confirm a slowdown - TDS
Apart from the advance GDP print, the US economic docket also features the release of Chicago PMI and Revised UoM Consumer Sentiment.
Technical levels to watch
A follow through weakness below yearly lows support near 0.6850 level is likely to get extended towards testing the 0.6800 handle ahead of 0.6775 horizontal support.
On the flip side, any recovery attempts beyond the 0.6900 handle, leading to a subsequent move above 0.6920 level, is likely to trigger a short-covering rally even beyond near mid-0.6900s back towards the key 0.70 psychological mark.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.