NZD/USD surrenders majority of its early gains

   •  USD selling recedes ahead of durable goods/Fed minutes.
   •  Rebounding US bond yields exerting some selling at higher levels.

The NZD/USD pair stalled its steady recovery move from last week's multi-month lows and has now surrendered majority of its early gains to weekly tops. 

The US Dollar selling pressure seems to have receded, at least for the time being, with a modest rebound in the longer-dated US Treasury bond yields prompting some fresh selling around higher-yielding currencies - like the Kiwi.

The latest leg of retracement from higher levels could also be attributed to some repositioning trade ahead of today's key release of US durable goods orders and the highly anticipated FOMC meeting minutes. 

Meanwhile, the price action is yet to show any signs of bearish exhaustion, while a lack of obvious domestic catalysts has also failed to assist the pair to register any meaningful recovery. 

Hence, it would be prudent to wait for a strong follow-through buying interest before confirming that the pair might have formed a near-term base near the 0.6800 region.

Technical levels to watch

Immediate support is pegged near 0.6815-10 region, below which the pair is likely to head back towards retesting multi-month lows support near 0.6780 level before eventually dropping to is next major support near mid-0.6700s.

On the upside, any recovery move is likely to confront immediate resistance near 0.6875 level, which if cleared might trigger a fresh bout of short-covering and lift the pair beyond the 0.6900 handle towards its next hurdle near the 0.6925 region.