NZD/USD holds weaker below 100-DMA

The NZD/USD pair came under some fresh selling pressure on Thursday and broke below 100-day support to hit the lowest level in nearly three-months.

The pair extended its rejection slide from the 0.7300 neighborhood, touched on Tuesday, and ran through some fresh offers on weaker NZ business confidence figures. 

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Adding to this, an uptick in the US Treasury bond yields supported a strong follow through US Dollar buying interest and further contributed towards long-unwinding pressure around higher-yielding currencies - like the Kiwi. 

Meanwhile, the market seems to have largely ignored today's upbeat official Chinese manufacturing PMI report, with broad based USD strength acting as an exclusive driver of the pair's drop to the lowest level since June 6.

Today's US economic docket highlights the release of personal income/spending data and the Fed's preferred inflation gauge - core PCE price Index. This coupled with the release of Chicago PMI and pending home sales data would now be looked upon for some fresh impetus later during the NA session.

Technical levels to watch

From current levels, the very important 200-day SMA near the 0.7130 region could protect the immediate downside, which if broken would turn the pair vulnerable to break below the 0.7100 handle and head towards testing its next support near mid-0.7000s.

On the upside, the 100-day SMA support break-point, near the 0.7180 region, now seems to act as an immediate resistance, above which the pair could make a fresh attempt to aim towards testing an important horizontal resistance near the 0.7250-55 region.