NZD/USD struggling near 3-week lows, US data and FOMC minutes in focus

Having posted a session high near 0.6985 region, the NZD/USD pair ran through some fresh offers and refreshed multi-week lows to currently trade around 0.6965-70 band. 

A modest recovery in the US treasury bond yields, which tends to drive flows away from higher-yielding currencies - like the Kiwi, has been one of the factors responsible for the pair's retracement from session high. Moreover, the outcome of latest dairy auction on Tuesday, with GDT price index falling to 1.6% as compared to 1.7% in the previous auction, continues to weigh on the New-Zealand Dollar and is collaborating to the mildly bearish sentiment surrounding the major. 

Meanwhile, higher commodity prices and Moody’s upbeat remarks on New Zealand’s AAA rating and stable outlook was seen extending support and contributed towards limiting further downslide, at least for the time being. 

Also lending support was subdued US Dollar price action against the backdrop of the latest news suggesting that the House Republicans are looking to revive the healthcare bill instead of moving on to the tax reform.

Market participants now look forward to the US economic docket, featuring the release of ADP report, ISM non-manufacturing PMI and FOMC meeting minutes for fresh impetus during early NA session. 

Technical levels to watch

On a sustained break below 0.6970 level, the pair is likely to accelerate the slide towards mid-0.6900s ahead of 0.6920-15 horizontal zone and 0.6900 important support. On the upside, any recovery attempt now seems to confront immediate resistance near the 0.70 handle, above which the pair is likely to dart towards mid-0.7000s en-route 100-day SMA hurdle near 0.7090 region.