NZD/USD fades a spike above 0.6900, dismal NZ trade weighs

• NZD weighed down by weaker oil prices.
• Poor NZ trade data a drag.
• Sold-off below 5-DMA

The NZD/USD pair witnessed good two-way trading in the Asia trades, now returning to the red zone below 0.69 handle, as we progress towards the European opening bells.

NZD/USD: 0.6861 back on sight?

The Kiwi failed to sustain its tepid recovery mode and met fresh supply in early Europe, as the European traders hit their desks and react negatively to the disappointing NZ trade report, which showed that the trade deficit widened more-than-expected in the reported month.

However, the losses appear to remain capped amid broad-based US dollar weakness and negative US rates, while the latest reports of the new New Zealand PM Ardern considering a mini-budget could also provide some support to the prices.

Focus now remains on the US data flow, including the jobless claims, goods trade balance, and housing data, due later in the NA session for near-term trading opportunities.

NZD/USD Levels to consider

The NZD slips back below 0.6900 levels, below which 0.6850 (psychological levels) and 0.6837/16 (May lows) are key near-term downside areas. To the topside, a test of 0.6913/16 (5-DMA/ classic R1) due on the cards, which could open doors towards 0.6939 (classic R2/ Fib R2).