NZD/USD fades the drop below 50 percent Fibonacci retracement support

• The NZD/USD is back above 0.66 (50% Fib R of 0.6501/0.6699) but remains on the defensive.
• Kiwi took a beating in early Asia as New Zealand business confidence fell to a 9-year low.

Currently, the NZD/USD pair is trading at 0.6606, having clocked a two-week low of 0.6593 earlier today.

The NZD was offered after the New Zealand Institute of Economic Research's (NZIER) quarterly survey of business opinion (QSBO) showed a net 30 percent of firms surveyed expected general business conditions to deteriorate compared with 20 percent in the previous quarter.

Notably, the third quarter reading is the lowest since March 2009 and justifies the Reserve Bank of New Zealand's (RBNZ) dovish tilt. As a result, the path of least resistance remains to the downside.

Even so, a positive turn above 0.6617 could be seen if the global equity markets continue to cheer the NAFTA deal.

NZD/USD Technical Levels

Resistance: 0.6620 (5-day EMA + 10-day EMA), 0.6662 (50-day EMA), 0.6699 (Sept. 21 high)

Support: 0.6593 (session low), 0.6577 (61.8% Fib R of 0.6501/0.6699), 0.6544 (Aug. 15 low)