NZD/USD struggles to rise above 0.72, remains in daily range

After starting the day with a small bearish gap, the NZD/USD pair turned positive on the day but had been having a difficult time rising above the critical 0.72 handle, which capped last week's rally. As of writing, the pair was trading at 0.7192, gaining 0.11% on the day.

In the previous week, the pair was able to take advantage of the USD weakness and gained more than 100-pips. However, amid a lack of fresh catalysts, the pair is struggling to gather bullish momentum. Moreover, the US Dollar Index is holding on to modest daily gains above the 93 handle. Today's only noteworthy data from the U.S. showed that the headline general business conditions index of the Empire State Manufacturing Survey climbed six points to 30.2, its highest level in three years.

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In the early trading hours of the Asian session, Consumer Price Index data from New Zealand will be released, which remained unchanged in on a monthly basis and came in at 1.7% annually in September. A higher-than-expected inflation could help the kiwi gather strength against its peers and allow the pair to test the 0.72 handle once again.

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Technical outlook

With a daily close below 0.7200 (psychological level/last week's high), the pair could aim for 0.7280 (100-DMA) and 0.7345 (Sep. 22 high). On the downside, supports align at 0.7150 (200-DMA), 0.7100 (psychological level) and 0.7055 (Oct. 10 low). The RSI indicator on the daily graph for the pair continues to tread water near the 50 handle, suggesting a near-term neutral outlook.

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