NZD/USD tumbles to fresh multi-week lows

The NZD/USD pair's attempted recovery move back above the 0.70 psychological mark ran through fresh offers, dragging it to fresh eight-week lows. 

Currently trading around 0.6985-80 region, the lowest level since Jan. 11, selling pressure around the major remained unabated in wake of growing bets for an imminent March Fed rate-hike action. 

Meanwhile, the latest leg of downslide could be attributed to a modest up-move in the US treasury bond yields, which seems to be driving flows away from higher-yielding currencies - like the Kiwi. 

Moreover, a mild bearish trading sentiment around commodity-space might have also collaborated to the offered tone surrounding the major. 

The pair on Tuesday drifted into negative territory for the fifth consecutive session as market participants now seem to price-in a further drop in the price of dairy products. Hence, today's release of GDT price index would now be looked upon for some immediate respite.

Technical levels to watch

From current levels, the ongoing downward trajectory is likely to find some support near 0.6960-55 horizontal area, which if broken should turn the pair vulnerable to extend the downslide further towards 0.6915 support ahead of the 0.6900 round figure mark.

On the upside, any recovery attempt now seems to confront immediate resistance near the 0.70 psychological mark. Momentum above this immediate hurdle, leading to a subsequent strength above 0.7020 (session peak area), might now trigger a short-covering rally towards 0.7060-65 resistance area.