NZD/USD stuck in a range, remains capped below 0.7300 handle

The NZD/USD pair struggled for a firm direction and seesawed between tepid gains/minor losses below the 0.7300 handle.

With markets still divided over the prospects of additional Fed rate hike move by the end of this year, in wake of Friday's mixed US monthly jobs report, a subdued US Dollar action has failed to provide any fresh impetus for the major. 

However, the prevalent risk-on environment and a modest retracement in the US Treasury bond yields were seen lending some support to riskier/higher-yielding currencies - like the Kiwi, albeit did little to help the pair to move back above the 0.7300 handle.

Looking at the broader picture, the pair remains within a 5-day old trading range and investors now look forward to this week's important US macro data - monthly retail sales and the latest CPI print, along with the Fed Chair Janet Yellen's testimony, before positioning for the next leg of directional move for the major.

   •  US inflation data and Yellen could see bond-market sell-off continue - ING

In absence of any major market moving economic releases on Monday, the pair remains at the mercy of broader market risk sentiment the US bond yield dynamics. 

Technical levels to watch

Immediate support is pegged near mid-0.7200s, below which the pair is likely to extend the corrective slide back towards the 0.7200 handle en-route its next major support near 0.7170 level. On the upside, the 0.7300 handle remains an immediate strong hurdle, which if cleared decisively now seems to lift the pair beyond multi-month tops near 0.7345 level towards yearly highs resistance near 0.7375 area.