NZD/USD: Off highs as New Zealand's consumer spending drops for 8th straight month

• NZD/USD drops 10 pips from session highs on weak New Zealand data. 
• Risk sentiment sours as Mnuchin pulls the plug on US fiscal stimulus.

NZD/USD has backed off from session highs with a continued decline in a vital gauge of New Zealand's consumer spending. 

Credit Card Spending, which measures the change in credit card outlays by individuals, fell 6.3% in November following October's 9.9% decline. While the decline was less severe than the expected drop of 14.5%, it marked an eighth straight monthly contraction in consumer spending. 

The NZD/USD pair fell from session highs near 0.6920 to 0.6911 following the Credit Card Spending data. 

The Kiwi rose 20 pips in early Asia but failed to establish a foothold above 0.6920 as risk sentiment soured, pushing the US stock futures lower following the US Treasury Secretary Steve Mnuchin called an end to the pandemic relief for struggling businesses. 

That poured cold water over the optimism stemming from Senate Democratic Minority Leader Chuck Schumer's comments that Republican Majority Leader Mitch McConnell has agreed to revive the fiscal stimulus talks. 

Further, the rising number of coronavirus cases in the US and strengthening prospects of fresh lockdown weighed over the risk sentiment, capping the Kiwi's upside. 

Technical levels