NZD/USD fails to sustain move above 0.7300 handle

The NZD/USD pair failed to sustain its up-move beyond 0.7300 handle and has now retraced nearly 30-pips from session high to currently trade around 0.7280-85 region. 

Despite of the prevalent risk-on sentiment that tends to boost demand for higher-yielding currencies - like Kiwi, the pair has failed to gain traction amid broadly stronger greenback, which extended its overnight bullish momentum led by upbeat ISM manufacturing PMI.

Tuesday's key focus would be on the outcome of dairy auction and the fortnightly release of GDT Price Index, which should provide fresh impetus and assist the pair to break through near-term trading range. 

Meanwhile, increasing prospects of additional rate-cut by RBNZ at its meeting in November is likely to restrict sharp up-move ahead of Friday's monthly employment details from the US (NFP), which would help investors to determine the pair's next leg of direction move.  

Technical levels to watch

Weakness below session low support near 0.7270 is likely to find immediate support at 50-day SMA near 0.7260 region, which if broken decisively is likely to accelerate the slide immediately towards 0.7220-15 horizontal support. 

On the upside, sustained strength above 0.7300 handle, leading to a subsequent momentum above session high resistance near 0.7310, should boost the pair immediately towards 0.7330 (Sept. 27 high) ahead of its next major hurdle near 0.7355-60 region.