NZD/USD once again fails near 0.7300 handle
|The NZD/USD pair finally broke down of its Asian session consolidation phase and has now dropped to fresh session low near 0.7265-60 region, reversing majority of Friday's up-move.
Reemergence of the US Dollar buying interest, backed by a fresh wave of sharp up-move in the US Treasury bond yields has been one of the key factors weighing on higher-yielding currencies - like the Kiwi.
• US Treasury auction preview: 2y note auction will likely need some price concession - SocGen
Adding to this, possibilities of some long-unwinding, following the pair's yet another failed attempt to move back above the 0.7300 handle, might have also collaborated to the pair's retracement at the start of a new trading week.
With today's downfall, the pair now seems to have confirmed a strong supply zone near the mentioned resistance and hence, a follow through retracement below Friday's low would suggest that the pair might have topped out in the near-term.
Today's US economic docket features the release of durable goods orders and would be looked upon for some impetus ahead of this week's important events/data - the Fed Chair Janet Yellen's scheduled speech (Tuesday) and the final US GDP print (Thursday).
Technical levels to watch
A follow through weakness below mid-0.7200s would turn the pair vulnerable to extend its corrective slide back towards 0.7230-25 intermediate support en-route 0.7200 handle and 0.7185 support levels.
On the upside, momentum back above 0.7280 level might continue to face some fresh supply near the 0.7300 handle, above which the pair is likely to surpass multi-month highs resistance near 0.7320 level and aim towards testing its next major hurdle near 0.7345-50 region.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.