NZD/USD hits fresh half-yearly lows, 0.6900 closer

The New Zealand remains subdued against its American counterpart in the Asian trades, with NZD/USD now meandering near fresh multi-month troughs.

NZD/USD eyes NZ GDT price index

Currently, the NZD/USD pair trades modestly flat at 0.6926, flirting with six-month lows reached at 0.6923 last minutes. The Kiwi extends its downward spiral into a fifth day today, as divergent monetary policy outlooks between the Fed and RBNZ continue to exert bearish pressure on the NZD.

Moreover, Fed Chairwoman Yellen’s comments late-Monday on stronger jobs market, further reinforced expectations of a faster pace of Fed tightening next year, and lifted the greenback across the board.

Later today, the major will get influenced by Fonterra’s fortnightly dairy auction results and USD price-action ahead of tomorrow’s NZ trade balance data.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6947 (daily pivot), above which it could extend gains to 0.6965 (5-DMA) and from there to 0.7000 (zero figure). To the downside immediate support might be located at 0.6900 (round number) and from there to at 0.6877 (daily S2), below which 0.6850 (psychological levels) would be tested.