NZD/USD hits fresh 2-month lows, set to test 0.7100

The selling pressure intensified during the European opening trades, knocking off the NZD/USD pair to fresh two-month lows, closer towards 0.71 handle.

NZD/USD unperturbed by GBP/NZD sell-off

Currently, the NZD/USD pair drops -0.57% to fresh session lows of 0.7123, now looking to test 0.71 handle. The Kiwi extends losses into a fourth-day this Friday, as divergent monetary policy outlooks between the Fed and RBNZ comes back into spotlight, with the Fed likely to tighten its policy in the upcoming months, while the RBNZ is seen slashing rates next month.

Moreover, stronger US economic releases continue to back the USD bulls, while the NZD took a hit after the NZ GDT price index dropped and disappointed markets big time.

Further investors remain cautious in wake of the collapse in the GBP/USD pair, while upcoming US employment data also keeps the NZD bulls at bay.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7203 (100-DMA), above which it could extend gains to 0.7234 (10-DMA) and from there to 0.7261/75 (20 & 50-DMA). To the downside immediate support might be located at 0.7100 (two-month lows) and from there to at 0.7084 (daily S3), below which 0.7064 (Jul 29 low) would be tested.