NZD/USD flirting with lows, below 0.75 handle

Having posted a session high level of 0.7523, the NZD/USD pair ran through some fresh offers and gravitated to session lows in the region of 0.7485-80 band. 

The pair has now reversed all of Friday's mixed US GDP report-led up-move and today's slide could be solely attributed to a modest pickup in the greenback demand. In fact, the key US Dollar Index moved away from 13-month lows and has been one of the key factor weighing on the major.

Also collaborating to the pair's offered tone was a sharp deterioration in NZ business confidence, with ANZ Business Confidence Index falling to 19.4 in July from last month's reading of 24.8. 

Looking at the broader picture, reemergence of fresh selling interest on every up-move beyond the key 0.75 psychological mark could now be seen as first signs that the pair might have topped out in the near-term. The outlook would be further reinforced once the pair decisively corrects below mid-0.7400s. 

Today's US economic docket features the release of Chicago PMI and existing home sales data, which would be looked upon for some trading impetus later during the NA session.

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Technical levels to watch

A follow through weakness below mid-0.7400s is likely to drag the pair back towards 0.7415 horizontal support ahead of the 0.7400 handle. On the flip side, any up-move might continue to confront some fresh supply near the 0.75 handle, which is closely followed by resistance near the 0.7520-25 region.