NZD/USD trims early recovery gains, retreats to 0.7125
|The NZD/USD pair trimmed majority of its early recovery gains closer to mid-0.7100s and is currently trading with only marginal gains around 0.7125 level.
Continuous up-rise in the US 10-year Treasury bond yields, as markets continue to solidify expectations of December Fed rate-hike action, is weighing on higher-yielding currencies - like Kiwi, and restricted the initial attempted recovery move.
The pair initial recovery to session peak level of 0.7147 was assisted by a broad based corrective slide in the US Dollar as traders seemed inclined to take some profits off the table ahead of today's key US GDP print, scheduled later during NA session.
From technical perspective, given the pair's rejection on Wednesday from the vicinity of 100-day SMA, a subsequent weakness below 0.7100 handle would turn it vulnerable to extend its downslide further in the near-term.
Technical levels to watch
Immediate downside support is pegged near 0.7100 handle, which if broken is likely to accelerate the slide immediately towards monthly lows support near 0.7050-40 region. A follow through selling pressure would continue dragging the pair further towards the very important 200-day SMA support near 0.6980 region.
Meanwhile on the upside, momentum above session peak resistance near 0.7150 level seems to get extended towards 100-day SMA strong resistance near 0.7190 region above which a fresh bout of short-covering is likely to boost the pair back towards 0.7235-40 important resistance.
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