NZD/USD hits fresh multi-week lows ahead of FOMC minutes

A fresh bout of greenback buying interest emerged during early NA trading session, with the NZD/USD pair erasing all of its tepid recovery gains to 0.7095 level and dropping to the lowest level since July 27. 

Currently trading near session low around 0.7045 level, the turned lower for the third straight session as the traders continue to readjust ahead of the much awaited minutes from the Federal Reserve's September monetary policy meeting, which would provide fresh clues over the timing of next Fed rate-hike action.
 
Hawkish Fed minutes would reaffirm market expectations of an eventual Fed rate-hike move and would eventually weigh on higher-yielding currencies - like Kiwi, paving way for continuation of the pair's near-term downward trajectory.

Adding to this, comments from the RBNZ's Assistant Governor John McDermott reinforced expectations of further rate-cuts from the central bank and hindered any meaningful recovery for the pair from nearly 3-month low touched on Tuesday. 

Technical levels to watch

A follow through selling pressure below 0.7050 level seems to drag the pair immediately towards 0.7000 psychological mark support below which the pair is likely to head towards testing the very important 200-day SMA support near 0.6940 region.

On the flip side, 0.7085-90 area now becomes immediate strong resistance, which if cleared might trigger a short-covering bounce towards 100-day SMA support break-point, now turned resistance, near 0.7160 region.