NZD/USD: Bears launching attack towards 0.7200?

The selling pressure behind NZD/USD accelerated in the Asian session this Monday, mainly driven by a pick-up in the buying interest surrounding the greenback against its major peers.

NZD/USD awaits NZ trade data for fresh incentives

Currently, the NZD/USD pair now sinks -0.65% to 0.7225, having posted fresh four-day lows at 0.7218 last minutes. Having opened with a bearish gap on Monday, the Kiwi attempted to close out the gap, although in vain, as sellers took over charge and slammed the rate to the lowest levels in four-days closer towards 0.72 handle.

The renewed sell-off in the NZD/USD pair is largely backed by an extended relief rally in the US dollar index amid fresh bounce seen in USD/JPY post-Kuroda’s dovish comments. Further, size-able losses seen in the oil prices also dented the sentiment around the resourced-linked NZD.

In absence of fundamental triggers today, focus turns towards tomorrow’s US flash manufacturing PMI and new home sales data for fresh momentum on the major.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7260 (5-DMA), above which it could extend gains to 0.7300 (round number). To the downside immediate support might be located at 0.7205 (20-DMA) and from there to at 0.7159 (50-DMA).