NZD/USD weaker below 0.7150, awaits NFP for fresh impetus

Having dropped to its lowest level in nearly two months, the NZD/USD pair has managed to rebound few pips but remained in negative territory for the fifth straight session.

Currently trading around 0.7145 level, the pair extended its bearish break-out below 50-day SMA and dropped below 100-day SMA support for the first time since May. This week's disappointing release of GDT Price Index, coupled with increasing prospects of Fed rate-hike move, has been the key factors weighing on the Kiwi.

Moreover, market expectations for further monetary easing by RBNZ at its November meeting has failed to extend any support and halt the pair's ongoing slide from weekly highs just above 0.7300 handle.

Focus now shift to one of the keenly watched US economic indicators, non-farm payrolls, which if surprises on the upside would provide fresh impetus for the US Dollar bulls and continue dragging the pair further in the near-term.

Technical levels to watch

From current levels, any recovery above 0.7150 level is likely to confront resistance at 0.7165-70 region (session high) above which the recovery momentum could get extended beyond 0.7200 handle towards 0.7215-20 strong horizontal resistance.

Meanwhile on the downside, weakness below session low support near 0.7120 area might now drag the pair below 0.7100 handle toward testing its next support near 0.7080 level, which if broken would turn the pair vulnerable to test 0.7000 psychological mark support.