NZD/USD slides back closer to session lows
| • Weaker for the third straight session amid resurgent USD demand.
• Sliding US Treasury bond yields/US tax bill concerns help limit downside.
• Tuesday’s Chinese data dump to provide fresh impetus.
The NZD/USD pair stalled its Asian session recovery move near the 0.6935-40 region and refreshed session lows in the past hour.
The pair extended last week's retracement from over 2-week tops and traded with a mild negative bias for the third consecutive session on Monday, weighed down by a goodish pickup in the US Dollar demand.
However, a sharp slide in the US Treasury bond yields, led by reviving safe-haven demand, provided some support to higher-yielding currencies - like the Kiwi.
With the current focus on the US tax overhaul plan, failure to get the required support to pass the legislation might now contribute towards limiting deeper losses, at least for the time being.
In absence of any fresh fundamental drives, in terms of any major market moving economic releases, traders are likely to wait for Tuesday's Chinese data dump for some fresh impetus.
Technical levels to watch
Immediate support is pegged near the 0.6900 handle, which is closely followed by support at 0.6875 level. A convincing break below the mentioned support levels would turn the pair vulnerable to break below 0.6840 support and head towards testing the 0.6800 round figure mark.
On the upside, 0.6940-45 zone might act as an immediate hurdle, above which a fresh bout of short-covering could assist the pair to make an attempt towards reclaiming the key 0.70 psychological mark.
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