NZD/USD trims RBNZ-led gains, back around 0.7250

The NZD/USD pair soared to its highest level since May 2015 after RBNZ, as was widely expected, lowered its OCR by 25bps to 2.00%. The pair has retraced from higher levels and is now trading in familiar range around 0.7250 region.

The decision was on expected lines and was already priced-in by the markets, thus, triggered a sharp bullish reaction after the announcement. The pair, however, ran through fresh offers as higher levels as the central bank remained concerned over the higher exchange rate of the Kiwi and lower inflation, which warrants further monetary easing in the near-future. 

With the key event risk out of the way, the pair might now derive its moves from a broader sentiment surrounding the greenback. Meanwhile, short-term traders will take cues from today's US releases of weekly jobless claims and import price index, later during NA session. 

Technical levels to watch

Bulls will be disheartened if the pair fails to hold a previous strong resistance, now turned immediate support, near 0.7240 area, below which fresh selling pressure could drag the pair back towards 0.7200 round figure mark support. On the flip side, 0.7300 region remains immediate resistance to clear, above which the pair could head back to swing high resistance near 0.7340 region.