NZD/USD rejected at 0.7050, post-FOMC lows back on sight?

The recovery in NZD/USD lost steam at the mid-point of 0.70 handle, sending the rate back towards post-FOMC lows, following the release of disappointing NZ consumer confidence data.

NZD/USD extends consolidation

Currently, the NZD/USD pair trades -0.17% lower at 0.7025, looking to retest post-FOMC lows posted at 0.7010. The Kiwi remains under pressure, despite a recovery in risk sentiment amid higher Asian equities and a minor-rebound in oil prices.

The bulls prefer to remain on the back foot, in response to hawkish Fed inspired higher treasury yields, which dull the demand for the emerging market currency as an alternative higher yielding asset.

Moreover, negative consumer confidence data published by ANZ bank also weighed on the sentiment around the NZD and capped the recovery in the Kiwi. Next of relevance for major remains the US housing starts and building permits lined up for release later today.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7056 (daily pivot), above which it could extend gains to 0.7107/14 (20 & 200-DMA) and from there to 0.7131/42 (10 & 50-DMA). To the downside immediate support might be located at 0.7010 (post-FOMC lows) and from there to at 0.6988 (daily S1), below which 0.6968 (Nov 24 low) would be tested.