NZD/USD turns lower for sixth straight session

The NZD/USD pair erased early tepid recovery gains and has now drifted into negative territory to the sixth consecutive session.

Currently trading around 0.6910 level, testing session lows, the pair came under renewed selling pressure amid resurgent greenback buying interest. In fact, the broader US Dollar Index has now recovered majority of its early lost ground and remained steady near 14-year peak touched in the previous session. 

Earlier on Wednesday, the pair shrugged off disappointing NZ trade balance data and staged a minor recovery and build on yesterday's rebound from the lowest level since June 7. On Tuesday, the pair broke through 0.6900 handle and dropped to fresh six month low but managed to bounce off lows despite of disappointing GDT price index, recording its first negative reading (-0.5%) since the beginning of October. 

Later during NA session, existing home sales data from the US would now be looked upon for short-term trading opportunities ahead of key Thursday's key macro releases - NZ GDP and current account figures during early Asian session, and later during NA session, durable goods order, final Q3 GDP print and core PCE price index from the US. 

Technical levels to watch

A follow through selling pressure back below 0.6900 handle, leading to a break below 0.6885-80 region (yesterday's low), is likely to the pair vulnerable to extend its near-term downslide further towards 0.6800 handle (June 3 low) with some intermediate support near 0.6850 level. On the upside, 0.6945-50 zone now seems to have emerged as immediate strong resistance above which a bout of short-covering might lift the pair back towards 0.70 psychological mark.