NZD/USD bears unstoppable, plunges to fresh 2-month lows

The NZD/USD pair drifted into negative territory for the sixth consecutive day and dropped to its lowest level since Jan. 4 ahead of the US ADP report.

Currently trading around 0.6940-35 region, the pair failed to build on early tepid recovery move to session high near 0.6980 region and ran through fresh offers amid persistent greenback buying interest. 

As investors brace for an eventual Fed rate-hike action next week, continuous bullish surge in the US treasury bond yields underpinned the US Dollar demand and has been a key factor driving flows away from higher-yielding currencies - like the Kiwi.

Meanwhile, the disappointing outcome of the latest dairy action on Tuesday, with GDT price index down 6.3% compared to the previous result of -3.2%, and the Wednesday's New-Zealand Manufacturing Sales data did little to provide any immediate respite for the major. 

From the US economic docket, the release of ADP report would grab the spotlight during early NA session and would be followed by the release of revised Q4 Nonfarm Productivity data.

Technical levels to watch

Immediate support on the downside is pegged at 0.6920 level, below which the pair is likely to break below the 0.6900 handle and head towards December 2016 lows support near 0.6860 area.

On the upside, any recovery attempt now seems to confront immediate resistance near 0.6950-55 region. Further recovery beyond this immediate hurdle might now be capped at the key 0.70 psychological mark.