NZD/USD remains capped at 0.7100 handle ahead of NFP data

The NZD/USD pair once again faced rejection near 0.7100 handle and turned lower amid prevalent risk-off mood.

Currently trading with mild negative bias around 0.7085, testing session lows, the pair for the second day running failed to gain traction beyond 0.7100 handle as investors refrained from making big bets ahead of the keenly watched US monthly jobs report later during the day.

Moreover, bearish sentiment surrounding commodity markets is pointing to the prevalent risk-off sentiment and driving flows away from higher-yielding currencies - like the Kiwi, and exerting some selling pressure around the major. 

From technical perspective, the pair failed to extend Thursday's pull-back from closer to the very important 200-day SMA. Thursday’s price-action, coupled with Wednesday's sharp reversal from 3-week high, could possibly be an indication that the pair could be all set to resume with its prior weakening trend, albeit would remain dependent on today's headline NFP number.

Technical levels to watch

A follow through weakness below 0.7080 support seems to drag the pair back towards 200-day SMA support near 0.7045 region, which if broken decisively opens room for continuation of the downslide towards 0.70 psychological mark. On the upside, 0.7100 handle now seems to have emerged as immediate strong resistance. Sustained move above this hurdle should boost the pair immediately towards 0.7125 resistance before the pair eventually breaks through 3-week high resistance near 0.7170 region and head towards testing 100-day SMA resistance near 0.7190-95 region.