NZD/USD flirting with multi-week lows, now eyeing 0.7200 mark

The NZD/USD pair finally broke out of its 5-day old trading range and tumbled to a three-week low near 0.7230-25 region.

The pair came under intense selling pressure after data reported by Statistics New Zealand showed electronic card retail sales remained flat on a sequential basis as against consensus estimates of a 0.8% growth. This coupled with, a modest uptick in the US Treasury bond yields, which was seen lending some support to the US Dollar, was also seen weighing heavily on higher-yielding currencies - like the Kiwi. 

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Meanwhile, possibilities of some stops being triggered on a sustained break below mid-0.7200s immediate support further collaborated towards aggravating the selling pressure and dragged the pair to its lowest level since June 22.

Later during the NA session, the release of JOLTS Job Openings and Final Wholesale Inventories from the US would now be looked upon for some fresh trading impetus. In the meantime, the US bond yield dynamics could act as an exclusive driver of the pair's movement through European trading session on Tuesday.

Technical levels to watch

Immediate support is pegged near 0.7215-10 region, below which the pair is likely to accelerate the corrective slide towards 50-day SMA support near the 0.7120 region with some intermediate support near mid-0.7100s.

On the upside, any up-move back 0.7250 region now seems to confront some fresh supply near 0.7275-80 region, above which a bout of short-covering could lift the pair back beyond the 0.7300 handle towards retesting 0.7325-30 strong horizontal resistance.