NZD/USD looks to snap 4-day winning streak, trades below 0.6850

• Greenback gathers strength on the back of rising T-bond yields.
• USTR Lighthizer says its too early to predict the outcome of trade talks.
• Coming up: ANZ Activity Outlook and Business Confidence data.

The NZD/USD pair, which recorded gains in the previous four trading days and reached its highest level since the first week of February above 0.69, reversed its course on Wednesday and dropped below 0.6850 to erase this week's earnings. At the moment, the pair is down 0.6% on the day at 0.6845.

The U.S. Trade Representative Lighthizer today said that it was too early to predict the outcome of the trade talks between the U.S. and China. Lighthizer explained that China ramping up its purchases of the U.S. good wouldn't be enough for a deal to make it difficult for trade-sensitive currencies such as the kiwi find demand.

On the other hand, the US Dollar Index finally staged a modest recovery on Wednesday and forced the pair to extend its decline in the second half of the day. Although today's data from the U.S. wasn't significant or good enough to help the currency find demand, a sharp increase seen in the 10-year T-bond yield helped the currency outperform its rivals.

In the early trading hours of the Asian session, the ANZ's Activity Outlook and Business Confidence data will be looked upon for fresh impetus. More importantly, NBS manufacturing and non-manufacturing PMI reports from China will be watched closely by participants.

Technical levels to consider