NZD/USD slides back to Monday’s near one-month low

The NZD/USD pair remained under some selling pressure on Wednesday and has now dropped back closer to Monday's near one-month low. 

Currently trading around 0.6930 level, the ongoing geopolitical tensions, leading to a fresh wave of global risk-off trade, triggered the initial leg of downslide for the major, considered to be riskier. Moreover, a goodish recovery witnessed around the US treasury bond yields further collaborated towards driving flows away from higher-yielding currencies - like the Kiwi.

Meanwhile, today's mixed release of Chinese CPI and PPI figures did little to extend any immediate support and stall the pair's slide. Adding to this, a softer tone surrounding commodity space further dented demand for commodity-linked currencies, including the New-Zealand Dollar. 

With a relatively thin US economic docket, featuring the only release of import / export price index, the pair remains at the mercy of broader market risk-sentiment and the US bond yield dynamics amid midly softer tone surrounding the key US Dollar Index. 

Technical levels to watch

A follow through weakness below 0.6920 level is likely to drag the pair back towards 0.6890 horizontal support (March lows) ahead of 0.6860 level (Dec. 23 low). On the upside, 0.6955 level now seems to have emerged as immediate hurdle, above which a bout of short-covering could lift the pair back towards the key 0.70 psychological mark with some intermediate barrier near 0.6975-80 area.