NZD/USD drops farther below 0.75 mark, US data in focus

The NZD/USD pair once again met with some fresh supply near the 0.7525-30 region and has now retreated around 50-pips from session tops.

Currently placed at session lows, the pair has moved within striking distance of the 0.7460 horizontal support and the slide since early European session could be attributed to a modest pickup in the greenback demand. In fact, the key US Dollar Index staged a goodish recovery from 15-months lows and has been one of the key factors weighing on the major.

With markets looking past today's upbeat China Caixin Manufacturing PMI print, a wave of profit-taking move witnessed around commodity space further dented demand for commodity-linked currencies and collaborated to the pair's retracement to session lows near the 0.7475 region. 

Next in focus would be the US economic docket, featuring the release of personal income/spending data for June, Core PCE Price Index and ISM manufacturing PMI, which would be looked upon for some fresh impetus during early NA session.

   •  US: Focus on ISM manufacturing and core PCE - TDS

Technical levels to watch

A follow through weakness below 0.7460 immediate support could get extended towards 0.7415-10 area, below which the pair might turn vulnerable to head back towards 0.7365-60 horizontal support. 

On the flip side, momentum back above the key 0.75 psychological mark might continue to confront resistance near 0.7525-30 region, which if cleared has the potential to lift the pair beyond multi-month highs resistance near 0.7555-60 region towards reclaiming the 0.7600 handle.