NZD/USD extends recovery momentum, reclaims 0.7300 handle

Building on to Monday's recovery momentum from 50-day SMA support, the NZD/USD pair has now moved back above 0.7300 handle.

Currently trading at a fresh session high level of 0.7305, the pair is benefitting from the prevalent risk-on sentiment in a knee-jerk reaction to Hillary Clinton's win at the first US presidential debate against her Republican opponent, Donald Trump. 

Markets seem to have digested Monday's release of worse-than-expected New-Zealand's trade balance data for August. However, with market expectations inclined towards further RBNZ easing at its meeting in November, investors might use the current pull-back to initiate fresh short-positions and the pair runs the risk of a sudden turnaround in sentiment.

Meanwhile, the release of CB Consumer Confidence index from the US, later during NA trading session, might provide some impetus for short-term traders.

Technical levels to watch

Immediate upside resistance is pegged at 0.7310-15 area above which the pair is likely to dart towards 0.7350 strong resistance area. A follow through buying interest above 0.7350 barrier might negate any near-term bearish bias, assisting the pair to reclaim 0.7400 handle and head towards retesting 0.7450 resistance area.

Meanwhile on the downside, 0.7255-50 region now becomes immediate support, which if broken would turn the pair vulnerable to break through 50-day SMA support near 0.7225-20 region and immediately slide towards 0.7200 handle en-route its next major support near 0.7170-60 band.