NZD/USD: Recovery loses steam near 0.7320, NZ GDT eyed

The NZD/USD pair snapped the overnight retreat and attempted a minor-recovery above 0.73 handle so far this session, before meeting fresh supply near 0.7320 region.

NZD/USD: NZ GDT results – Up next

Currently, the NZD/USD pair trades +0.29% higher at 0.7314, having reversed a dip below 0.73 handle. The Kiwi is seen striving hard to take on the recovery further beyond 0.73 handle, although in vain, as prevailing cautious tone in the markets ahead of the central banks’ events, keeps the recovery short-lived.

Moreover, gains in the NZD/USD pair remains capped amid lower commodities’ prices, especially oil, which dampens the sentiment around the resource-linked NZD. Also, markets turn wary ahead of NZ Fonterra’s fortnightly auction results, which is likely to have major impact on the spot, while the US housing data will be also closely eyed ahead of Wednesday’s Fed decision and RBNZ verdict due to be announced on Thursday.

NZD/USD Levels to consider

To the upside, the next resistance is located at0.7334/50 (daily R1/ psychological levels), above which it could extend gains to at 0.7400 (round number). To the downside immediate support might be located at 0.7294 (5-DMA) and from there to at 0.7242 (50-DMA).