NZD/USD chart - Trading View
NZD/USD was trading largely unchanged at 0.7005 at around 09:40 GMT, after closing 0.83% lower in the previous session.
The pair has erased early gains and has slipped lower from session highs at 0.7033. Price action has retraced into the daily cloud.
Price action has been grinding lower in Sloping Channel pattern and failure to hold break above 21-EMA has raised scope for further downside.
The major has been on a downward spiral for the previous 3-weeks and break below 55-week EMA will drag the pair lower.
The Fed's latest hawkish shift pushed bond yields to their highest since the start of July in anticipation of tighter U.S. monetary policy, underpinning the U.S. dollar.
Focus now on U.S. fiscal policy with the House of Representatives due to vote on a $1 trillion infrastructure bill this week to avoid a partial government shutdown.
Technicals for the pair support more downside. 55-week EMA is immediate support at 0.6972. Break below will see test of 0.6865 (110-week EMA) ahead of 0.6765 (channel base).
