NZD/USD trims gains on rejection near 0.6950

• USD heavy in Asia.
• Risk-aversion seeps back.
• Eyes on Trump’s announcement on the Fed Chair nominee.

The renewed uptick the NZD/USD pair lost legs just shy of 0.6950 mark, now pushing the rates closer towards the 0.69 handle.

NZD/USD eases-off weekly tops

The Kiwi embarks upon a minor corrective slide towards Asia close, after having hit fresh one-week tops of 0.6943 earlier on the day, in the wake of aggressive selling seen in the US dollar across the board in sync with the US equity futures.

The overnight comments from the US house tax committee Chairman Brady triggered the sell-off in the equity markets, weighing down on the buck. Brady said, “the tax bill will only have temporary cut in the corp rate from 35% to 20%.”

However, the selling in the US dollar quickly paused, prompting a retracement in the spot. Meanwhile, the sentiment around the NZD/USD pair remains underpinned by the better-than-expected NZ jobs report released a day before.

Later today, the US tax reform bill and next Fed Chair announcements will drive the sentiment around the greenback, eventually impacting the pair amid a lack of relevant US macro news.

NZD/USD Levels to consider

The NZD remains supported above 0.6900/01 (round figure/ daily pivot), below which 0.6879 (5-DMA) and 0.6818 (5-month low) are key near-term downside areas. To the topside, a test of 0.6950 (psychological levels) due on the cards, which could open doors towards 0.6994 (20-DMA).