• Weighed down by surging US bond yields.
• US tax bill headlines to remain in focus.
The NZD/USD pair remained heavily offered through the early NA session and has now moved within striking distance of multi-month lows touched in late October.
A sharp rebound in the US Treasury bond yields, supported by Wednesday's US economic data that showed an uptick in the underlying inflation, helped the US Dollar to stage a solid rebound and was eventually seen weighing heavily on higher-yielding currencies - like the Kiwi.
The greenback got an additional boost from a report, via Politico, that House Republicans are confident of having sufficient support to pass a massive overhaul of the US tax code. Investors, however, are likely to remain cautious ahead of a key vote on the long-awaited US tax legislation, due later today.
In the meantime, the US economic docket would be looked upon for some short-term trading impetus but is likely to be overshadowed by some repositioning trade ahead of the key event risk.
Technical levels to watch
A follow-through selling pressure below 0.6830 level is likely to accelerate the fall towards the 0.6800 handle before the pair eventually drops to its next major support near the 0.6775-70 region.
On the upside, recovery attempts back above 0.6850 level might now confront fresh supply near the 0.6875-80 region and is closely followed by a strong hurdle near the 0.6900 handle.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.