NZD/USD Sellers regain control, slammed below 0.7100

The New Zealand dollar got battered by its American counterpart in the Asian trading this Monday, slamming NZD/USD to daily lows below 0.71 handle.  

Currently, the NZD/USD pair drops -0.50% to trade at 0.7094, hovering within a striking distance of daily lows struck at 0.7088. The NZD/USD pair remains heavily offered on the back of reduced demand for higher-yielding emerging market currencies, in response to higher US treasury yields, which in-turn boosts the greenback at the expense of the NZD.

Further, renewed concerns surrounding a Hard-Brexit landing ahead of the UK PM May’s speech on Brexit, also weighs on the majors amid increased demand for safe-havens such as the yen, gold etc.

Focus now shifts towards key economic releases lined up this week, with the NZ GDT price index, US CPI, China data dump to remain the main risk events that will have significant impact on the Kiwi.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7134 (200-DMA), above which it could extend gains to 0.7150 (psychological levels) and from there to 0.7189 (daily R3). To the downside immediate support might be located at 0.7046 (10-DMA) and from there to at 0.7029 (50-DMA), below which 0.7000 (key support) would be tested.