NZD/USD pare losses, still weak below 0.7250

Having posted a session low near 0.7210 region, the NZD/USD pair has managed to recover some of its lost ground and is currently trading with only marginal losses around 0.7240-45 band.

During early Asian session on Monday, the pair came under renewed selling pressure for second consecutive session amid reviving hopes of an eventual Fed rate-hike in 2016 as we head towards this week's speech from the Fed Chair Janet Yellen at the Jackson Hole Symposium, which would be looked upon for fresh cues over the central bank's monetary policy outlook for the rest of 2016.

From a technical perspective, the pair's repeated failures to sustain its strength above 0.7300 handle points to higher possibilities of a near-term corrective move.

Technical levels to watch

From current levels, 0.7200 handle remains immediate support to defend, which if broken decisively would now turn the pair vulnerable to extend its near-term downward trajectory initially towards 0.7165-60 intermediate support before eventually dropping to test 0.7125-20 strong support.

On the flip side, sustained momentum back above 0.7275-80 immediate resistance, leading to a subsequent buying interest beyond 0.7300 handle, should now assist the pair towards retesting RBNZ-led swing high resistance near 0.7340 area, which if cleared should pave way for continuation of the pair's near-term upward trajectory.