NZD/USD tests 50-DMA support near 0.7300 handle

The NZD/USD pair remained under some selling pressure for the fourth consecutive session and dropped to fresh 3-week lows near the 0.7300 handle. 

The pair extended its corrective slide and has now retreated around 250-pips from over 26-month highs beyond mid-0.7500s touched on June 27. Currently hovering around 50-day SMA, for the first time since May 22, the pair was being weighed down by a modest pickup in the US Dollar demand, supported by Tuesday's upbeat JOLTS job openings data.

   •  US Dollar clings to gains near 93.50

The latest report on job openings added to the US labor optimism led by Friday's NFP report and revived hopes for additional Fed rate hike action in 2017, which is eventually weighing on higher-yielding currencies - like the Kiwi. Adding to this, deteriorating investors' risk appetite, amid rising geopolitical tension between the US and N. Korea further boosted the greenback's safe-haven appeal against the NZ counterpart. 

   •  NZD: Negative bias - ANZ

Meanwhile, investors' reluctance to buy the NZ Dollar, ahead of Thursday's RBNZ monetary policy decision, also did little to provide any immediate respite and help the pair recover from lower levels. Along with the RBNZ announcement, the latest US inflation figures on Friday would help determine the next leg of directional move for the major.

   •  RBNZ will flat-line its OCR track - ANZ

Technical levels to watch

On a sustained break below 50-day SMA support, currently near the 0.7300 handle, the pair is likely to accelerate the fall towards the 0.7265-60 region en-route 0.7220-15 horizontal support. Meanwhile, on the upside, any recovery move might now confront some fresh supply near 0.7345-50 zone, above which the pair is likely to dart towards reclaiming the 0.7400 handle.