NZD/USD faded a spike to 3-week high, turn negative ahead of ADP report

The NZD/USD pair faded early European session spike to three-week peaks and has now drifted into negative territory, heading towards the lower end of daily trading range. 

Currently trading around 0.6965 region, reversing around 60-pips from session high, a broad based greenback recovery, with the key US Dollar Index erasing majority of its post-Fed minutes slide, has been the key factor attracting fresh selling pressure around the major.

Moreover, a swift recovery in the US treasury bond yields is further weighing on higher-yielding currencies - like the Kiwi, and collaborated to the pair's sharp reversal from the highest level since Dec. 16.

Next on tap would be ADP report on US private sector employment, which would act as a precursor to the official NFP data on Friday and might provide fresh impetus for short-term traders. Also in focus would be ISM non-manufacturing PMI print for December, due later during NY trading session. 

Technical levels to watch

Further retracement below session low support near 0.6955 level is likely to accelerate the slide towards 0.6920 horizontal support ahead of 0.6900 round figure mark. On the upside, 0.70 psychological mark now seems to act as immediate hurdle above which the pair is likely to head back towards 0.7025-30 resistance area (session peak) en-route 0.7075-80 confluence resistance, comprising of 200 & 50-day SMAs.