New Zealand dollar holds 5-year low ahead of Q1 GDP data

The New Zealand dollar is headed for its monthly close below the 0.70-mark against the US dollar in five years as the market is waiting for the first quarter GDP data.

NZD/USD slipped to 0.6964 from 0.6987 on Wednesday, and is only a shade away from the 12 June low of 0.6942, which was its lowest since July 2010.

As per data earlier in the day, New Zealand's current account has swung to surplus for the first time in about five years. The balance came in at +$0.66bn for the March quarter, rebounding from -$3.19bn in the December quarter.

The New Zealand economy expanded 3.5% from a year earlier in the December quarter, which was a multi-year high. The sequential rate was 0.8%. Forecasts are for both the rates to ease in the first quarter. The data will be out at 10.45pm GMT.

The market is waiting for the Federal Reserve policy decision due later in the day and then Thursday's Eurogroup meeting where crucial decision will be likely as the Greek crisis has escalated to much higher levels.

The NZD/USD pair has completed one year of downward trend and it is now testing support at the 50% Fibonacci retracement of the 2009-2014 rally.

More specifically, the pair has big supports at 0.6800 and then 0.6400, which is the 61.8% retracement. On the higher side, 0.7176 and then 0.7370 are the immediate resistance levels ahead of 0.7455 and 0.7683.