NZD/USD slammed to fresh 10-month lows

The NZD/USD pair remained under intense selling pressure for the second consecutive session and dropped to fresh 10-month lows post US economic data.

Spot ran through some fresh offers on mostly better-than-expected US economic data - larger-than-expected drop in initial weekly jobless claims, stable trade deficit and higher unit labor cost, which partly negated a sharp drop in the nonfarm productivity data. 

Today's macro data, however, remained supportive for the post-FOMC up-surge in the US treasury bond yields. This coupled with the ongoing slump in commodity prices further drove flows away from riskier / higher-yielding currencies, including the Kiwi. 

Next on tap would the US factory orders data, which would be looked upon for some trading impetus ahead of Friday's release of NZ inflation expectations, during Asian session, and the keenly watched NFP data.

Technical levels to watch

Immediate support is pegged near 0.6830-25 area, which if broken is likely to accelerate the slide towards the 0.6800 handle ahead of 0.6775-70 support area. On the upside, 0.6870-75 zone now seems to act as immediate resistance, which if cleared could lead to an additional recovery towards the 0.6900 handle. Any subsequent recovery beyond the said handle now seems to be capped at 0.6930-35 horizontal resistance.