NZD/USD fails ahead of 0.73 handle, surrenders daily gains

The NZD/USD pair failed to build on early up-move and seems to have faced rejection just ahead of the 0.7300 handle, retreating over 30-pips from session tops. 

The pair failed to gain traction despite the bearish sentiment surrounding the greenback, led by Tuesday's less dovish comments by the ECB President Mario Draghi and scepticism over the Trump administration’s ability to push through pro-growth fiscal stimulus plans. 

The ongoing up-move in the US Treasury bond yields, after the Fed Chair Janet Yellen reiterated that the central bank would continue to gradually raise interest rates, has been one of the key factors weighing on higher-yielding currencies - like the Kiwi. 

The latest leg of slide over the past hour or so could also be attributed to a modest greenback recovery, with the key US Dollar Index rebounding after being slumped to fresh yearly lows below the 96.00 mark.

Later during the day, the release of pending home sales data from the US would now be looked upon for some fresh trading impetus. Apart from the US economic data, the pair's movement on Wednesday would also be influenced by comments coming out of a panel discussion at the European Central Bank Forum.

   •  NZD: Another test lower could be possible - ANZ

Technical levels to watch

Immediate support is pegged near mid-0.7200s, below which the pair is likely to extend its corrective slide from fresh multi-month tops back towards 0.7215 level en-route 0.7200-0.7195 strong horizontal support.

On the flip side, the 0.7300 handle now becomes immediate resistance, which if cleared decisively now seems to lift the pair beyond 0.7340-45 resistance (yesterday's swing high) towards testing yearly tops resistance near 0.7375 level.