NZD/USD jumps to session tops, 0.73 on sight amid broad based USD weakness

After an initial dip below 0.7220 level, the NZD/USD pair regained traction and turned positive for the third consecutive session.

Currently placed at nearly one-week high, around 0.7275-80 band, the pair was seen benefitting from broad based USD weakness. Against the backdrop of disappointment from the Fed Chair Janet Yellen's speech on Friday, concerns over economic damage caused by Hurricane Harvey continued weighing on the greenback.

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Adding to this, a sharp slide in the US Treasury bond yields added to the buck's downside momentum, dragging the key US Dollar Index sinking below the 92.00 handle to its lowest level since January and boosting demand for higher-yielding currencies - like the Kiwi. 

Later during early NA session, the release of CB Consumer Confidence Index would now be looked upon for some short-term trading impetus ahead of the RBNZ Governor Graeme Wheeler's speech during early Asian session on Wednesday.

Technical levels to watch

Immediate resistance is pegged near the 0.7300 handle, above which the pair is likely to aim towards challenging 50-day SMA heavy supply zone near the 0.7325-35 region. On the flip side, mid-0.7200s now becomes an immediate support to defend, which if broken could turn the pair vulnerable to head back towards testing the 0.7200 handle.