NZD/USD extends softer NZ trade data led slide

   •  NZ trade deficit narrows less than expected.
   •  Modest USD/US bond yields recovery prompt fresh selling.
   •  US PMI eyed for some trading impetus.

The NZD/USD pair came under some fresh selling pressure on Friday and might now be headed towards the lower end of previous session's trading range. 

The pair stalled its steady recovery move from closer to over 17-month lows and extended overnight retracement from 0.6900 handle, snapping four consecutive days of winning streak. 

The New-Zealand Dollar was being weighed down by today's disappointing release of trade balance data, coming in to show a deficit of NZ$871 million for October. 

This, along with a modest US Dollar recovery, supported by a goodish pickup in the US Treasury bond yields prompted traders to move out of higher-yielding currencies - like the Kiwi, especially after an up-move of over 120-pips since last Friday. 

Later today, flash version of US PMI figures (manufacturing and services) would influence the USD price-dynamics and might provide some impetus on the last trading day of the week. 

Technical levels to watch

Immediate support is now pegged near mid-0.6800s, below which the pair could head back towards 0.6820 intermediate support en-route the 0.6800 handle.

On the upside, momentum beyond 0.6885-90 zone might now assist the pair to build on its momentum beyond the 0.6900 handle towards its next hurdle near 0.6940 level and 0.6970 area.