NZD/USD flirting with lows near 0.7220

Having posted a session high near the 0.7360 region, the NZD/USD pair ran through some fresh offers and eroded majority of Friday's strong gains back closer to yearly tops. 

Currently trading around 0.7320 area, testing session lows, the pair was being weighed down by a modest pickup in the US Dollar demand and seems to have largely ignored a softer tone surrounding the US Treasury bond yields. 

Even today's upbeat Chinese macro data failed to provide any fresh bullish impetus, with the USD price dynamics acting as an exclusive driver of the pair's movement at the start of a new trading week. 

Meanwhile, reemergence of selling pressure just ahead of yearly tops, near 0.7365-70 region, could be the first signs of a near-term topping formation and increases the likelihood of a possible near-term corrective slide.

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Later during the NA session, the release of Empire State Manufacturing Index would now be looked upon to grab some short-term trading opportunities ahead of the key quarterly NZ CPI print, due for release during early Asian session on Tuesday.

Technical levels to watch

Immediate support is seen near the 0.7300 handle, below which the fall could get extended towards 0.7275 horizontal level before the pair eventually drops back to 0.7220 important support. 

On the upside, momentum beyond mid-0.7300s might continue to confront some fresh supply near 0.7365-70 region, above which a fresh bout of short-covering could assist the pair towards reclaiming the 0.7400 handle.