NZD/USD weakens back below 0.6900 handle

After yesterday's recovery bounce, the NZD/USD pair came under renewed selling pressure on Tuesday and is now trading back below 0.6900 handle.

Currently trading around 0.6885 region, the pair remained closer to last week's nearly seven month low amid resurgent greenback buying interest, albeit lacked momentum in wake of thin trading in wake of Christmas holidays.

Moreover, investors also seemed reluctant to build fresh US Dollar bullish positions following its post US-presidential election sharp up-surge since early November. The strong up-move was driven on speculations of aggressive fiscal stimulus policies by Trump administration and hence, investors now preferred to wait to see if the US President-elect Donald Trump can actually deliver new pro-growth economic policies before determining the next leg of directional move.

In absence of any major market moving releases, the pair is likely to witness a subdued trading action ahead of the Conference Board's consumer confidence index, due later during NA session. 

Technical levels to watch

Immediate support on the downside is seen near 0.6860 region below which the pair is likely to immediately drift towards 0.6820-15 horizontal support ahead of 0.6800 round figure mark. On the upside, momentum above 0.6900 handle might continue to confront resistance near 0.6925 region, which if cleared might trigger a short-covering bounce towards 0.6960 resistance, en-route 0.7000 psychological mark.