NZD/USD: bears in control; 0.74 mark at risk?

The NZD/USD pair extended previous session's rejection move from 0.7525-30 hurdle and remained under some selling pressure for the second consecutive day. 

The pair ran through some fresh offers and dropped to one-week lows on mixed NZ jobs report, showing a big miss on the employment change and a downtick in the unemployment rate. In fact, the number of employed people during the second quarter of 2017 fell 0.2% q-o-q, as compared to a rise of 0.7% expected, and added on the pair's overnight weakness led by disappointing GDT Price Index. 

   •  NZ: Weak employment growth masked tightening in the labour market - ANZ

The outcome of the latest auction showed dairy prices contracted by 1.6%, marking its fastest rate of contraction since March and which followed a 0.2% increase at the previous sale. A combination of disappointing fundamental reports triggered the first leg of any meaningful retracement for the major, which anyways was due for some sort of near-term correction.

The pair, however, has managed to bounce off 0.7415 horizontal support area and is currently placed at 0.7435-30 region in absence of any follow through US Dollar buying interest. Investors' focus now shifts to the release of ADP report on the US private sector employment, due for release later during the NA session. 

Technical levels to watch

A follow through weakness below 0.7415-10 immediate support now seems to drag the pair below the 0.7400 handle towards its next major support near 0.7370-65 horizontal zone. 

On the upside, any recovery move back above 0.7450-55 area now seems to confront resistance near 0.7480 level ahead of the 0.75 handle.