NZD/USD mildly weaker for second straight session, but holds above 0.74 handle

Haresh Menghani FXStreet

The NZD/USD pair traded with a negative bias for the second consecutive session and dropped to the 0.7400 handle during early Asian session on Tuesday.

The pair, however, has recovered around 25-30 pips from session lows and is currently trading around the 0.7430 region amid persistent greenback selling pressure. The US political uncertainty continued weighing on the buck, with the key US Dollar Index hovering around 13-month lows and helping the pair to recover early lost ground.

Despite the sharp rebound, the pair held with minor losses below 10-month highs touched on Friday as traders seemed inclined to lighten their bullish bets ahead of this week's important event risk - FOMC monetary policy decision, scheduled to be announced during the NY trading session on Wednesday.

In the meantime, today's US economic docket, featuring the release of CB's Consumer Confidence Index would be looked upon to grab some short-term trading opportunities ahead of the RBNZ Assistant Governor John McDermott's speech and NZ trade balance data.

Technical levels to watch

On a decisive break below the 0.7400 handle, the pair is likely to accelerate the fall towards 0.7370-65 strong horizontal zone en-route 0.7345-40 support area. On the upside, sustained momentum back above mid-0.7400s should pave way for continuation of the pair's near-term upward trajectory towards Sept. 2016 highs resistance near the 0.7475 region ahead of the key 0.75 psychological mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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