NZD/USD slides back closer to Friday's YTD lows, below mid-0.7000s

   •  NZD weighed down by weaker NZ business confidence index.
   •  Resurgent USD demand/positive US bond yields add to the pressure.
   •  Traders eye US economic data for some short-term opportunities.

The NZD/USD pair continued losing ground through the mid-European session and is currently placed at session lows.

After Friday's modest rebound, the pair came under some renewed selling pressure and was being weighed down by disappointing NZ business confidence, falling to a three-month low level of -23.4 in April from -20 reported last month.

This coupled with resurgent US Dollar demand, further supported by a modest uptick in the US Treasury bond yields, exerted some additional downward pressure on higher-yielding currencies - like the Kiwi. 

Currently trading around 0.7040 area, the pair has now moved within striking distance of 4-month lows touched on Friday as traders now look forward to the US macro releases for some short-term trading opportunities. 

Moving ahead, this week's quarterly NZ employment details and the highly anticipated FOMC meeting should help investors determine the pair's next leg of directional move. 

Technical levels to watch

A follow-through selling has the potential to continue dragging the pair towards 0.7025 intermediate support en-route the key 0.70 psychological mark. On the upside, recovery attempts back above 0.7060-65 resistance might continue to confront fresh supply near the 0.7100 handle, above which a bout of short-covering could lift the pair towards the 0.7155-60 hurdle.