The NZD/USD pair extended Wednesday's reversal from the vicinity of 100-day SMA region and has now dropped to a fresh session low.
Currently trading around 0.7140 region, the pair's offered tone for the second consecutive day has been primarily led by an unexpected surge in NZ trade deficit for the month of September. Moreover, the prevalent risk-off mood, as depicted by persistent weakness in European equity markets, is further denting demand for higher-yielding currencies - like Kiwi.
Meanwhile, growing expectations that the US Federal Reserve would eventually move towards raising interest rates at its meeting in December continues to underpin the US Dollar and has been a key factor driving the pair lower since the beginning of this month.
Next in focus would be US Economic docket featuring the release of monthly durable goods orders and pending home sales data for September, which is expected to provide some impetus for the pair ahead of Friday's US Q3 GDP print that would help investors to determine the next leg of directional move for the pair.
Technical levels to watch
A follow through selling pressure is likely to drag the pair immediately towards 0.7125 support, which if broken would turn the pair vulnerable to break below weekly lows support near 0.7110 and head towards testing 0.7095-90 support area.
On the upside, 0.7160-65 region (session peak) now seems to have emerged as immediate resistance above which the pair is likely to make an attempt to surpass weekly high resistance near 0.7185 region and aim towards conquering 100-day SMA resistance near 0.7200 handle.
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