NZD/USD breaks below 0.6900 barrier

The NZD/USD pair extended its bearish slide and has now dropped below 0.6900 handle for the first time since June 7.

Currently trading around 0.6885 level, the greenback gained further traction across the board, with the overall US Dollar Index heading back towards 14-year high, and has been the sole contributor for the pair's ongoing slide to fresh six month low. Markets now seemed convinced that aggressive fiscal stimulus measures by Trump administration would lead to faster US economic growth and inflation, which eventually builds on to last week's hawkish Fed outlook and weighing heavily on higher-yielding currencies - like the Kiwi. 

With an empty US economic data, the pair remains at the mercy of broader US Dollar price-dynamics, while the release of GDT Price Index, later on Tuesday, and NZ trade balance data, during early Asian session, might provide some respite for bulls. 

Technical levels to watch

On a sustained weakness below 0.6890 (June 7 low) would turn the pair vulnerable to extend its downslide further towards 0.6800 handle (June 3 low) with 0.6850 level providing some intermediate support. On the upside, any recovery beyond 0.6910 might now confront resistance near 0.6950 level and momentum above 0.6950 level now seems to be capped below 0.70 psychological mark.