NZD/USD attacks 7-week lows amid resurgent USD demand

The USD bulls are back in command in Asia this Monday, further fuelling the selling pressure behind the NZD/USD pair in a bid to retest seven-week lows reached last week at 0.7003.

The US dollar made a solid comeback against its main competitors from Friday’s decline, as expectations of a March Fed hike begin to rebuild, as we head into the NFP week. Fed Chair Yellen hinted on Friday that a rate hike this month depends upon the upcoming US labor market report. Will this week's US NFP confirm a Fed rate hike in March? - Nomura

Additionally, the Kiwi met fresh sellers after the NZ Treasury’s monthly economic indicators reported a slightly downbeat assessment of the economy, with Private consumption growth likely moderated in the December 2016 quarter, following strong growth earlier in the year.

Also, reports of North Korea's launch of four ballistic missiles keeps markets unnerved, collaborating to the downbeat tone behind the higher-yielding currency NZD.

Next on tap for the major remains the US factory orders data due later in the NA session, in the meantime persisting RO-RO sentiment will have a key bearing on the prices.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7047/50 (daily high/ psychological levels), above which it could extend gains to 0.7072 (Mar 3 high) and from there to 0.7109/30 (100 & 10-DMA). To the downside immediate support might be located at 0.7003/00 (Mar 3 low/ psychological support) and from there to at 0.6959/56 (Jan 11 & 10 low), below which 0.6914/00 (Dec 29 low/ round number) would be tested.