NZD/USD: Downside opening up towards 0.6950

The Kiwi prolongs its downward trajectory for the sixth consecutive session on Friday, heavily sold-off into divergent monetary policy outlooks between the Fed and RBNZ.

Recent streak of upbeat US economic data coupled with hawkish Fedspeaks bolstered March Fed rate hike bets, while dismal NZ trade figures and local risks to the economy, as cited by RBNZ Governor Wheeler yesterday, continue to keep more easing hopes from the RBNZ alive.

As for today’s trade in the running, the major remains weighed down by below estimates Chine services PMI data, which revealed that activity in China's services sector expanded at the slowest pace in four months.

Markets now look forward to the US ISM services data and a flurry of Fedspeaks due later on Friday for fresh impetus to the USD, eventually impacting NZD/USD.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7066 (daily high), above which it could extend gains to 0.7087 (daily pivot) and from there to 0.7115/25 (100 & 5-DMA). To the downside immediate support might be located at 0.7000 (psychological support) and from there to at 0.6959/56 (Jan 11 & 10 low), below which 0.6915/00 (Classic S3/ round number) would be tested.