NZD/USD falls to a session low of 0.7011, slipping just below its 100-hour moving average
After a poor showing yesterday, the dollar has managed to reverse losses against the antipodeans with NZD/USD seen falling to a low of 0.7011 today.
That pretty much erases the advance yesterday with the pair now seeing a drop back just below its 100-hour moving average (red line) @ 0.7019.
As such, buyers have relinquished near-term control and that sees a key battle in between the key hourly moving averages @ 0.7002-19 at the moment.
A drop below the 200-hour moving average (blue line) and the 0.7000 handle will keep sellers invested to push the downside agenda as seen recently.
For now, there is some swing region support around 0.6940-45 so that will be a key focus area if we do see the near-term bias flip to being more bearish.
Further support is then seen closer to the 200-day moving average @ 0.6882.
As much as there is reason to be upbeat on risk, it may be tough to argue for that to be the case against the dollar at this point in time.
With US economic data outperforming and Treasury yields still keeping with the path of least resistance for the most part, the greenback may see limited downside unless the steepening path in yields stall altogether and the market gets comfortable with that.
But as seen so far today, Treasury sellers are not completely out of the picture with 10-year yields picking up from 1.677% to 1.705% on the session and that so far is enough to provide some familiar comfort for the dollar after the drop yesterday.
