NZD/USD drops to 0.68 following GDT auction

• GDT price index falls for the 12th straight time.
• Commodity sell-off intensifies to weigh on the kiwi.
• US Dollar Index advances to 96.60 area.

The NZD/USD pair came under a renewed selling pressure in the second half of the day and slumped to a fresh 3-day low 0.6803. As of writing, the pair was trading at 0.6812, losing 0.4% on a daily basis.

Following the bi-weekly GDT auction in New Zealand, GDT price index fell 3.5% to record its 12th straight decline and weighed on the kiwi. Furthermore, the commodity sell-off led by a more than 5% drop in crude oil prices put some extra weight on commodity-sensitive NZD's shoulders.

On the other hand, the US Dollar Index, which tracks the greenback against a basket of six major currencies, gained traction in the NA session and rose to a daily high above 96.60 and erased all of its losses from Monday to drag the pair lower. At the moment, the DXY is up 0.45% on a daily basis at 96.60. The only data from the U.S. today showed that housing starts increased 1.5% in October following September's 5.5% fall. 

Commenting on the data, "The increase in US housing starts suggests that construction companies are finding good demand and that a strong labor market and rising wages are partially compensating for ever higher selling prices and mortgage costs," FXStreet senior analyst Joseph Trevisani said.

Technical levels to consider

The initial support for the pair aligns at 0.6800 (psychological level/200-DMA) ahead of 0.6740 (Nov. 8 low) and 0.6700 (Nov. 12 low). On the upside, resistances could be seen at 0.6870 (daily high), 0.6915 (Jun. 25 high) and 0.7000 (psychological level).