NZD/USD extends recovery toward 0.66 on broad-based greenback weakness

• The U.S. trade balance continues to grow in July. 
• The US Dollar Index extends losses toward 95.
• Fed's Bullard argues against further rate hikes.

After falling to its lowest level in nearly 30 months at 0.6530, the NZD/USD pair took advantage of the broad-based greenback weakness and gathered bullish momentum in the early NA session to rise toward the 0.66 mark. At the moment, the pair is trading at 0.6575, adding 0.27% on the day.

Today's data from the U.S. showed that the international trade deficit in July rose to $50.1 billion compared to June's $45.7 billion to make it difficult for the greenback to stay resilient against its rivals. Furthermore, a sharp upsurge witnessed in the GBP/USD pair following the latest Brexit headlines seems to have put some extra weight on the buck's shoulders. As of writing, the US Dollar Index was down 0.28% on the day at 95.15.

In the meantime, St. Louis Fed President James Bullard recently said that the flattening yield curve and inflation expectations pointed out that the monetary policy was already neutral or even somewhat restrictive. Bullard further argued that the Fed should hold off on further rate hikes.

Later in the day, regional Fed presidents Kashkari, Williams, and Bostic will also be delivering speeches.

Technical levels to consider

The initial resistance for the pair aligns at 0.6600/05 (psychological level/Sep. 4 high) ahead of 0.6660 (Aug. 31 high) and 0.6700 (50-DMA). On the downside, supports could be seen at 0.6530 (daily low), 0.6500 (psychological level) and 0.6460 (Feb. 2, 2016, low).