NZD/USD hits fresh 2-month lows, eyes 0.7000

The kiwi remains as the weakest currencies on Tuesday after the beginning of the American session. NZD/USD dropped to 0.7048, hitting the lowest level since July 27. The pair remains near daily lows under pressure, as the US dollar climbs across the board. 

During the Asian session the New Zealand dollar dropped in the market after comments from RBNZ assistant governor McDermott, who reiterated that additional monetary easing would be required in order to revive inflation expectations. On the other direction, the US dollar has been moving with a bullish bias since the beginning of the day. 

NZD/USD approaches 0.7000

So far the decline has found support around the 0.7050 area, if the pair drops below, the next support could be seen at 0.7015 (Jul 22 high), before the 0.7000 handle. 

The short-term bearish pressure is likely to hold as long as the price holds below the 0.7080/85 area (European session high / 20-hour moving average), above here, the pair is likely to rise to test 0.7100 and then the next resistance could be seen at 0.7120 ( Oct 10 low).