NZD/USD sits at one-month lows, closer to 200-DMA important support

The NZD/USD pair remained under some selling pressure for the third consecutive session on Tuesday and is currently placed closer to the very important 200-day SMA support. 

The pair extended last week's rejection slide from 100-day SMA support turned resistance and has now dropped to a one-month low amid a strong follow through US Dollar buying interest. Monday's upbeat US ISM manufacturing PMI reinforced expectations for additional Fed rate hike move by year-end. 

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Growing market conviction is evident from continuous upsurge in the US Treasury bond yields, which was seen underpinning the greenback demand and eventually driving flows away from higher-yielding currencies - like the Kiwi.

Meanwhile, a mildly weaker trading sentiment around commodity space also did little to lend any support to commodity-linked currency and stall the pair's slide to its lowest level since late August. 

Later during the NA session, the release of GDT Price Index would influence sentiment around the NZ Dollar and help traders grab some short-term trading opportunities. The Fed Governor Jerome Powell's comments at an event in Washington DC would also be looked upon for some impetus. 

Technical levels to watch

The 200-day SMA near mid-0.7100s remains immediate strong support to defend, which if broken decisively would turn the pair vulnerable to break below August monthly lows support near 0.7130 level and head towards testing the 0.7100 handle.

On the upside, any recovery attempts might now confront fresh supply near the 0.7200 handle, above which a bout of short-covering could lift the pair back towards 100-day SMA strong hurdle near the 0.7250-55 region.