NZD/USD hangs near 3-week lows, Thursday's RBNZ decision holds the key

The NZD/USD pair traded with a negative bias for the third consecutive session and held closer to near three-week lows touched in the previous session.

The pair continued to react to Friday's robust US jobs report and the selling pressure got stronger on Monday, dragging the pair below strong horizontal support. The NZ Dollar was also being weighed down by yesterday's quarterly inflation expectations, coming in at 2.1% for the second quarter as compared to the previous quarter's reading of 2.2%.

Adding to this, a slight deterioration in investors' risk appetite and repositioning trade, ahead of Thursday RBNZ monetary policy decision and the latest US inflation figures on Friday, was also seen collaborating to the weaker sentiment surrounding the major.

   •  RBNZ: Expect no change in policy setting – Nomura

Further downslide, however, remained limited amid some renewed greenback selling pressure, with the key US Dollar Index hanging near 15-month lows on overnight dovish comments from Fed's Kashkari and Bullard. 

   •  US Dollar appears weak around 93.20

Today's US economic docket features the release of JOLTS Job Openings, which would be looked upon to grab some short-term trading opportunities ahead of this week's key event risks. 

Technical levels to watch

On a sustained weakness below mid-0.7300s, the pair is likely to aim towards testing 50-day SMA near the 0.7300 handle, which if broken would open room for an additional near-term corrective slide towards 0.7225-20 strong horizontal support.

Meanwhile, on the upside, any recovery move now seems to confront some fresh supply near 0.7390 level, above which the pair is likely to dart back towards 0.7445-50 strong horizontal resistance.