NZD/USD: Sellers in control, flirts with 0.6900 post-NZ Treasury report

The selling pressure behind the NZD intensified in the mid-Asian trades, now pushing NZD/USD to fresh session lows reached just below 0.69 handle.

NZD/USD knocked-off below 5-DMA

Currently, the NZD/USD pair drops -0.32% to fresh session lows of 0.6897, failing to resist above 0.69 barrier. The Kiwi failed to take advantage of the persisting favourable risk environment, with the NZ traders returning to markets on the back foot, expectant of a dovish RBNZ policy decision due later in the week ahead.

Moreover, NZD/USD also remains vulnerable as the trading activity around the commodities remains largely subdued, while the traders appear to ignore upbeat NZ treasury report published in the last hour.

The immediate focus now remains on the RBA cash rate decision due later this session, which could have a rub-off effect on its OZ partner, the NZD.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6952/64 (Jun 6 high/ 4-week high), above which it could extend gains to 0.7000 (psychological levels). To the downside immediate support might be located at 0.6846 (50-DMA) and from there to at 0.6819/0.6791 (10-DMA/ 1h 200-SMA).