NZD/USD off-highs, eyes a test of 0.6965 - Tuesday’s low?

The Kiwi erases most gains and now eyes a test of Tuesday’s low reached at 0.6965 levels, as sentiment sours amid a retreat in the Asian stocks and steady USD demand across the board.

NZD/USD retreats from 0.6984

NZD/USD flirts with daily lows struck near 0.6975 region, as the resource-linked NZD fails to take advantage of higher oil prices and Moody’s upbeat remarks on New Zealand’s AAA.

The latest leg lower in the Kiwi is mainly driven by a slight deterioration in risk environment, with risk-off trades seeping back into markets amid renewed weakness seen in the Asian equities.

Also, resurgent demand for the treasury yields dulls the attractiveness of the emerging market currency as an alternative higher-yielding asset.

Meanwhile, markets continue to weigh slightly weaker GDT price index released a day before, as attention now turns towards the US private jobs data and FOMC minutes due later today.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7011/15 (10 & 20-DMA), above which it could extend gains to 7079/86 (100 & 50-DMA) and from there to 0.7145/50 (200-DMA/ key resistance). To the downside immediate support might be located at 0.6963 (Jan 17 low), and from there to 0.6907/00 (Mar 15 low/ zero figure), below 0.6859/ 50 (Dec 23 low/ psychological levels) would be tested.