NZD/USD breaches 0.7000 support on weak NZ data

The Kiwi is back on the offers after two straight sessions of gains, in the wake of weak NZ fundamentals and prevalent risk-off environment.

NZD/USD below 5-DMA at 0.7004

NZD/USD is seen meandering near daily lows amid a typical risk-off market profile, with the safe-havens on the rise at expense of the higher-yielding assets such as the NZD, equities, oil etc.

Additionally, a dip in the NZ business morale in Q1 2017 also collaborated to the downbeat tone around the Kiwi. Markets shrugged-off upbeat report from the New Zealand's Ministry for Primary Industries, which showed that it raised the forecasts for primary industry exports.

The major now eagerly awaits the US datasets and NZ GDT price index due later in the NA session. In the meantime, persisting risk trends will continue to drive the major.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7041 (classic R2/ Fib R3), above which it could extend gains to 7086/0.7100 (100 & 50-DMA/ zero figure) and from there to 0.7146/50 (200-DMA/ key resistance). To the downside immediate support might be located at 0.6973/63 (Jan 16 & 17 low), and from there to 0.6907/00 (Mar 15 low/ zero figure), below 0.6859/ 50 (Dec 23 low/ psychological levels) would be tested.