The NZD/USD pair recovered from the session low of 0.7077 but is having a tough time chewing through offers around 0.71 handle.
Gains capped by Fed rate hike bets
As per the latest CME Fed funds futures data, the probability of a rate hike in December is at 70%. This is despite Yellen’s comments on Friday that the central bank may allow the economy to run ‘hot’.
Later in the day, the action in the treasury yields and US industrial production could influence the pair.
NZD/USD Technical Levels
A breakdown of support at 0.7079 (5-DMA) would open doors for a slide to 0.7034 (Oct 13 low) and 0.70 (zero figure). On the other hand, a breach of resistance at 0.7124 (10-DMA) would expose 0.7169 (100-DMA) and 0.72 (zero figure).