NZD/USD plummets to fresh 5-month lows, bears eyeing 0.69 mark

   •  Drop to lowest since May 22
   •  Weighed down by surging US bond yields

Having faced rejection at the key 0.70 psychological mark, the NZD/USD pair tumbled to fresh 5-month lows during early NA session on Tuesday.

The pair came under some intense selling pressure following earlier comments from New-Zealand Prime Minister-designate Jacinda Ardern, calling for review and reforms in the Reserve Bank Act. 

Downslide gains momentum on surging US bond yields

Adding to this, a sharp uptick in the US Treasury bond yields, which helped offset early US Dollar weakness, further aggravated the selling pressure around higher-yielding currencies - like the Kiwi. 

Even the prevalent bullish trading sentiment around commodity space did little to lend any support to the commodity-linked currency and stall the pair's slide to its lowest level since May 22, closer to the 0.6900 handle. 

Next on tap would be the release of US flash PMIs - manufacturing and services, which is likely to turn out to be a non-event but would still be looked upon for some trading opportunities. 

Technical levels to watch

Bulls would be trying to defend the 0.6900 handle, which if broken is likely to accelerate the fall towards mid-0.6800s ahead of yearly lows support near the 0.6820-15 region.

On the upside, any recovery attempts might now confront fresh supply near mid-0.6900s, above which the pair could dart back towards the 0.70 handle.