NZD/USD digs in its heels to halt decline from 0.73

• The Kiwi gets the rug pulled out from under it just as it reaches the 0.7300 level.
• Middling data produces little effect in the NZD following a drastic swing in sentiment to end Tuesday's trading.

The Kiwi is shifting sideways in Tokyo trading, testing the waters just above 0.7260.

ANZ figures for the Activity Outlook and Business Confidence middled on release, with the Activity Outlook printing at 21.8%, over the previous period's 20.4%, but the Business Confidence survey took the other side of the coin, printing a -20 versus the previous -19. Economic indicators for the New Zealand economy continue to strike a tone of 'good, but not good enough' and growth for the small country continues to middle as the Reserve Bank of New Zealand (RBNZ) is projected to stand pat on interest rates well into 2019 as the central bank watches the skies for signs of improving activity.

little else remains on the data docket this week for the Kiwi, but later on today will be seeing US GDP figures, forecast to come in at 2.7% versus the previous 2.6%. Market sentiment has been the major driver of traders' decisions recently, and that trend looks set to continue following late Tuesday's sudden reversal of the early week's gains as sentiment grows fearful once more on insipient geopolitical tensions.

NZD/USD Levels to watch

The Kiwi is still holding higher on the week, but yesterday's decline puts a crimp in bullish potential, and support is now sitting at the week's opening price of 0.7230 and last week's swing low of 0.7205, while resistance is pricing in at yesterday's swing high of 0.7285 and this week's high of the 0.7300 major level.