NZD/USD pauses 2-day rally near 0.7000, eyes on US data

The New Zealand dollar is seen making minor-recovery attempts against its American counterpart in the Asian session, however, remains capped below 0.70 handle amid subdued trading activity  

The Kiwi halted its two consecutive days of gains and turned back into negative territory as the greenback regained lost footing across the board, as investors gear up for the US datasets, including the retail sales and CPI, due later in the NA session.

Moreover, risk-off sentiment dominates Asia as looming goes-political tensions on the Korean peninsula and over US bombing Afghanistan continue to spook markets, with investors flocking to safe-havens such as yen and gold at the expense of risk currency NZD.

Further, renewed oil-price weakness also collaborates to the downbeat tone around the resource-linked currency. The major now looks forward to the US economic releases for fresh incentives amid holiday-thinned trading (Easter break).

NZD/USD Levels to consider                                                                              

To the upside, the next resistance is located at 0.7024/27 (Classic R1/ Fib R2), above which it could extend gains to 7050/40 (psychological levels/ 50-DMA) and from there to 0.7075 (100-DMA/ key resistance). To the downside immediate support might be located at 0.6907/00 (Mar 15 low/ zero figure), and from there to 0.6887 (Mar 9 low), below 0.6859/ 50 (Dec 23 low/ psychological levels) would be tested.