NZD/USD sits at 1-1/2 week lows, below 0.73 handle
| • Reviving USD demand offsets upbeat NZ data.
• Sliding US bond yields fail to lend any support.
• Technically seems vulnerable to slide further.
The NZD/USD pair remained heavily offered through the early NA session and is currently placed at 1-1/2 week tops, below the 0.7300 handle.
Despite today's upbeat release of the quarterly NZ retail sales data, the pair failed to gain traction and traded with a negative bias for the fifth session in the previous four. Some renewed US Dollar buying interest triggered the initial leg of weakness.
Even the prevalent weaker tone around the US Treasury bond yields, which tends to underpin demand for higher-yielding currencies - like the Kiwi, did little to lend any support and stall the pair's fall to its lowest level since Feb. 14.
The pair's retracement slide from 0.7435-40 supply zone, which has been acting as a key hurdle since September 2017, accelerated further once the 0.7310 immediate support was broken.
From a technical perspective, the pair now seems to have formed a triple-top chart pattern on daily charts and hence, a follow-through weakness, led by some fresh technical selling, now seems a distinct possibility.
Technical levels to watch
Immediate support is pegged near 0.7265-60 zone and is followed by 50-day SMA support near the 0.7225 region. On the upside, 0.7310-15 area now seems to act as an immediate hurdle, above which a bout of short-covering could lift the pair towards 0.7375 intermediate resistance en-route the 0.7400 handle.
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