NZD/USD drops to 3-week low, GDT price index in focus

The NZD/USD pair came under some renewed selling pressure on Tuesday and weakened back below the key 0.70 psychological mark.
 
Currently trading around 0.6980-75 region, the pair has now reversed all of its tepid recovery gains recorded in the previous two sessions and dropped to its lowest level since mid-March. 

Today's disappointing release of quarterly New-Zealand business confidence index, dropping to 17% in Q1 from previous 28%, triggered the initial leg of slide for the major. Adding to this, a fresh wave of global risk-off trade further drove flows away from riskier / higher yielding currencies - like the Kiwi, and dragged the pair back closer to an important support near the 0.6975-70 region. 

Also collaborating to the offered tone surrounding the major was mildly positive sentiment surrounding the greenback, with the key US Dollar Index meandering around session tops near mid-100.00s.

Traders now await the US economic data - trade balance and factory orders, and the key NZ GDT price index, for some fresh impetus during early NA session.

   •  US: Factory orders and trade deficit in focus - TDS

Technical levels to watch

A follow through selling pressure below 0.6975 level is likely to accelerate the slide towards mid-0.6900s ahead of 0.6920-15 horizontal zone and 0.6900 important support.

On the upside, recovery back above the 0.70 handle might continue to confront resistance near 0.7015 region, above which the pair is likely to dart towards mid-0.7000s, en-route 100-day SMA hurdle near 0.7090 region.