NZD/USD erases upbeat NZ GDP-led gains

The NZD/USD pair reversed majority of strong-than-expected NZ GDP-led tepid recovery gains to 0.6925 level and has now moved on the verge of breaking into negative territory for the seventh straight session.

Currently hovering around 0.6900 handle, the pair came under renewed selling pressure as traders seemed to readjust their positions ahead of important US macro data, including the final revision of growth numbers and the Fed's preferred inflation gauge - core PCE price index.

Earlier on Thursday, the pair staged some minor recovery after NZ Q3 GDP growth surpassed expectations and came-in to show a quarterly growth of 1.1% versus 0.8% expected and 0.7% recorded in the previous quarter. Today's strong growth number diminished prospects of immediate monetary easing by RBNZ and assisted the pair to bounce from over 6-month low. 

The recovery, however, turned short-lived as weak sentiment surrounding commodity space was seen denting demand for commodity-linked currencies - like the Kiwi. Adding to this, the US Dollar also seemed to regain some traction, from early shallow profit-taking dip, and further undermined the major. 

Investors now keenly await for important US economic releases, which might provide some impetus for short-term traders amid pre-holiday dull trading conditions. 

Technical levels to watch

From current level, 0.6880 area (multi-month lows) is likely to act as immediate support, which if broken is likely to accelerate the slide towards 0.6820 horizontal support ahead of 0.6800 round figure mark. On the upside, any recovery attempts might continue to confront resistance near 0.6920-25 region, which if cleared decisively seems to assist the pair towards 0.6970 resistance, en-route 0.70 psychological mark.