NZD/USD well-offered for third straight session, hits fresh two-week lows

The NZD/USD pair remained under some selling pressure for the third consecutive session and has now dropped to fresh two-week low near 0.6920-15 region.

Spot extended its rejection move from 50-day SMA important hurdle and is being weighed down by surging US treasury bond yields, which tends to drive flows away from higher-yielding currencies - like the Kiwi. 

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The pair even shrugged off upbeat NZ credit card spending data and subdued US Dollar price-action, with the US bond yield dynamics being an exclusive driver of the pair's ongoing downslide to the lowest level since April 12.

It, however, remains to be seen if the pair continues with its downward trajectory or is able to find some buying interest near the 0.6900 handle amid prevalent risk-on environment and absent fundamental drivers, in-terms of any major market moving economic releases.

Meanwhile, investors would remain focused on the US President Donald Trump's promised big announcement on tax reforms, expected later during the day.

Technical levels to watch

Weakness below 0.6909 level (April 12 low) could get extended towards 0.6895-90 support, below which a fresh leg of weakness is likely to drag the pair towards 0.6860-40 intermediate support en-route the 0.6800 handle.

On the upside, any recovery attempts might now confront immediate strong resistance near 0.6955-60 area, which if cleared is likely to lift the pair back towards 0.6985-90 area before eventually lifting it beyond the key 0.70 psychological mark towards retesting 50-day SMA important hurdle near 0.7025-30 region.