NZD/USD nose-dives to sub-0.7300 level

The NZD/USD pair failed to build on RBNZ's inflation expectations data-led up-surge to 3-month peaks near 0.7375 level and has now dropped below 0.7300 handle. 

Currently trading around 0.7295-90 band, testing session lows, the pair snapped three days of winning streak and reversed previous session gains amid continuation of the US Dollar recovery move. In fact, the key US Dollar Index extended gains for the second straight session and is now placed at daily tops near 100.60 region, up +0.70% for the day. 

A modest recovery in the US Treasury bond yields, coupled with weaker sentiment around commodity space, further weighed on riskier/higher-yielding currencies - like the Kiwi, and collaborating to the pair's sharp reversal from the highest level since Nov. 9.

Next in focus would be the release of US trade balance data and JOLTS job openings, which would be looked upon for short-term trading opportunities. Also in focus would be Court hearing on a legal battle over Trump's travel ban, which might turn out to be a sentimental driver of the pair's movement on Tuesday.

Technical level to watch

Immediate support is pegged near 0.7280 level below which the pair is likely to accelerate the slide towards 0.7240 horizontal support, en-route 0.7200 round figure mark. On the upside, recovery back above 0.7300 handle might now confront resistance near 0.7320-25 region above which the pair is likely to attempt a fresh move towards retesting session peak resistance near 0.7375 region.