NZD/USD plummets to 7-week lows, fast approaching 0.6500 mark

The NZD/USD pair edged lower through the early European session on Tuesday and dropped to seven-week lows, around the 0.6525-20 region in the last hour.

The pair added to the overnight heavy losses and remained under some selling pressure for the third consecutive session on Tuesday. Concerns about the economic impact of a deadly coronavirus in China kept exerting some pressure on the commodity-linked currencies – like the kiwi.

NZD/USD struggles to find buyers

Meanwhile, the ongoing downward momentum to the lowest level since December 11 seemed rather unaffected by a goodish rebound in the global risk sentiment. Bulls even shrugged off a subdued action surrounding the US dollar, which failed to benefit from a pickup in the US Treasury bond yields.

The pair has now dropped closer to the very important 200-day SMA support, around the 0.6510 region, which if broken should pave the way for an extension of the recent sharp pullback from over five-month tops set on the last day of 2019.

Moving ahead, market participants now look forward to the US economic docket – highlighting the release of Durable Goods Orders and the Conference Board's Consumer Confidence Index – in order to grab some short-term trading opportunities later during the early North-American session.

Technical levels to watch