NZD/USD well offered below 0.7000 on RBNZ easing bets

The NZD/USD pair remained under intense selling pressure and plunged to 0.6950 before retracing few pips to currently trade around 0.6980-85 band. 

The pair slummed to a six-week low after RBNZ's economic update raised concerns over low inflation and elevated level of the domestic currency. The statement fueled speculation of further interest rate-cut at its meeting on August 11. 

The pair, however, has managed to recover a bit from lower levels as the US Dollar remained broadly on the back-foot ahead of the ECB monetary policy decision and subsequent press conference. Although the event might not directly impact the pair, but would definitely infuse some volatility across the board and hence, eventually would provide some immediate momentum. 

From the US, focus would on some important releases, which includes - Philly Fed manufacturing index, weekly jobless claims and existing home sales data. 

Technical levels to watch

On the immediate upside, 0.7000 handle now become immediate resistance, above which the pair is likely to get some respite till session high resistance near 0.7030 region. A follow through buying interest has the potential to lift the pair back towards 0.7100 handle.

Meanwhile on the downside, weakness below session through support near 0.6950 seems to drag the pair immediately towards 100-day SMA support near 0.6915 region, which if broken would open room for a fresh leg of weakness for the pair.