NZD/USD drops below 0.5950 amid broad USD strength

• US Dollar Index continues to climb higher toward 100.
• Upbeat Chinese PMI data fail to help NZD find demand.
• Coming up: CB Consumer Confidence and Chicago PMI data from US.

After failing to hold above the 0.6000 handle, the NZD/USD pair extended its slide and touched a fresh daily low of 0.5945. As of writing, the pair was trading a couple of pips above that level, erasing 1% on a daily basis.

V-shaped recovery in China?

The data from China on Tuesday revealed a sharp recovery in the private sector's business activity. The Manufacturing PMI in March jumped to 52.3 from 29.6 and the Non-Manufacturing PMI improved to 52.3 from 29.6 with both figures surpassing market expectations by wide margins. 

Despite the upbeat Chinese data, the pair struggled to gain traction as the broad-based USD strength allowed the bearish pressure to remain intact.

The US Dollar Index, which closed the first day of the week with a gain of 0.75%, continues to push higher and was last seen adding 0.7% on the day at 99.72.

During the American trading hours, the Chicago PMI and the Conference Board's Consumer Confidence Index from the US will be looked upon for fresh impetus.

Technical levels to watch for