NZD/USD off one week lows, finds some support ahead of mid-0.6700s

   “¢   Bulls shrug off China’s signal of economic stimulus to counter slowing growth.
   “¢   A modest pickup in the USD demand prompts some long-unwinding trade.

The NZD/USD pair remained heavily offered through the mid-European session, albeit now seems to have found some support ahead of mid-0.6700s.

Despite China’s indications for further economic stimulus to counter slowing economic growth, the pair stalled its recent positive momentum from over two-month lows and was now seen extending overnight retracement slide from near four-week tops, around mid-0.6800s.  

Supportive comments from China were largely offset by the US Trade Representative Robert Lighthizer’s remarks that he did not see any progress made on structural issues during the US-China trade talks last week and thus, failed to provide any meaningful impetus.

This coupled with a modest US Dollar uptick, backed by a goodish pickup in the US Treasury bond yields, prompted some long-unwinding trade, which coupled with the prevalent cautious mood further collaborated to the pair’s slide to a one-week low level of 0.6755.  

In absence of any major market moving economic releases from the US, the USD price dynamics might continue to act as an exclusive driver of the pair’s momentum through Wednesday’s trading session.

Technical levels to watch

A follow-through weakness below mid-0.6700s could further get extended towards the 0.6720 intermediate support en-route the 0.6700 round figure mark. On the flip side, the 0.6800 handle, closely followed by the 0.6815-20 region now seems to act as immediate levels, above which the pair is likely to head back towards challenging the 0.6850 supply zone.