NZD/USD flirting with weekly lows, just above mid-0.6300s

• The pair remained under some selling pressure for the second straight session.
• The downfall seemed rather unaffected by positive US-China trade development.

The NZD/USD pair remained under some heavy selling pressure for the second consecutive session and refreshed weekly lows, around the 0.6355 region in the last hour.
 
The pair extended this week’s pullback from the 0.6435-40 supply zone – over one-month tops – and witnessed some follow-through weakness on the last trading day of the week amid a slightly weaker tone around equity markets.

Cautions mood continues to exert pressure

Against the backdrop of growing concerns about slowing global economic growth, risk of an early snap election in the UK weighed on investors’ sentiment and drove flows away from perceived riskier currencies – including the Kiwi.
 
The downfall seemed rather unaffected by positive news regarding US-China trade deal, wherein reports suggested that China aims to buy at least $20 billion of American farm products as a part of the phase one deal in the first year.
 
Meanwhile, the US Dollar failed to extract any meaningful support from a modest pickup in the US Treasury bond yields, albeit did little to impress bullish traders or ease the prevalent bearish sentiment surrounding the major.
 
Friday’s US economic docket, featuring the release of revised UoM consumer sentiment index, is unlikely to provide any meaningful impetus, leaving the pair at the mercy of broader market risk sentiment and the USD price dynamics.

Technical levels to watch