Extending its reversal from 2-week high for the second consecutive day, the NZD/USD pair has now broken below 0.7300 handle and erased the majority of its weekly gains.
Currently trading around 0.7280-85 band, the pair touched a 4-day low level 0.7270 earlier amid speculations of further interest rate cut by RBNZ at its November meeting. Moreover, a broad based US Dollar recovery, post-FOMC sell-off, is also contributing to the selling around the major.
With a thin US economic docket, featuring the only release of Markit flash manufacturing PMI for the month of September, the pair's next leg of move remains solely dependent on the dynamics surrounding the greenback.
Technical levels to watch
Weekly low near 0.7255 seems to act as immediate support below which the pair seems to immediately head towards 50-day SMA support near 0.7225 region. On the flip side, any recovery attempt might now confront resistance at 0.7300 handle, which is closely followed by resistance near 0.7315-20 region.
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