NZD/USD flirting with lows near 0.6940 level

The NZD/USD pair came under some renewed selling pressure and reversed part of Monday's tepid recovery move from 4-week lows.

Currently trading around 0.6940 region, testing session lows, the pair has been weighed down by prevalent cautious sentiment across global financial market. Rising geopolitical tensions, further reinforced by sliding treasury bond yields, has been driving flows away from riskier / higher-yielding currencies - like the Kiwi.

Investors even shrugged-off a modest US Dollar weakness, despite of overnight hawkish remarks by the Fed Chair Janet Yellen that reaffirmed additional Fed rate-hike moves through 2017, with broader market risk sentiment being an exclusive driver for the pair's bearish slide on Tuesday. 

Next on tap would be the release of second-tier US economic data - JOLTS jobs openings data, followed by a scheduled speech by the Minneapolis Fed President Neel Kashkari, which would be looked upon for some short-term trading impetus.

Technical levels to watch

Immediate support is pegged near 0.6920 level (yesterday's low), below which the pair is likely to turn vulnerable to head back towards retesting multi-month lows support near 0.6890 level ahead of 0.6860 level (Dec. 23 low).

On the upside, 0.6970 level now seems to have emerged as immediate resistance, which if cleared seems to lift the pair beyond the key 0.70 psychological mark towards 0.7015-20 hurdle.