NZD/USD plummets to 200-DMA important support

The NZD/USD pair remained heavily offered through early NA session, with bears now challenging the very important 200-day SMA support near the 0.7130-35 region. 

A strong follow through greenback buying interest, assisting the key US Dollar Index to extend its sharp recovery from over 2-1/2 year lows has been weighing heavily on the pair over the past two trading session.

The greenback's rebound seems to have gathers pace and further aggravated the selling pressure around the major, which was already being weighed down by today's disappointing NZ business confidence data. 

Even the prevalent risk-on environment and bullish sentiment around commodity space did little to provide any immediate respite and stall the pair's fall to its lowest level in nearly three months. 

With the key focus on personal income/spending data and core PCE price index, today's US economic docket would now be looked upon for some fresh impetus. 

   •  US: Expect a solid 0.5% m-o-m increase in personal income and spending - Nomura

Technical levels to watch

A follow through selling pressure has the potential to continue dragging the pair further towards the 0.7100 handle ahead of the next support near the 0.7060-55 region.

On the upside, any recovery attempts might now confront some fresh supply near 0.7170-80 zone (100-day SMA region), above which a bout of short-covering could lift the pair beyond the 0.7200 handle towards 0.7215-20 hurdle.