NZD/USD jumps back to 0.7200 handle

Having posted a session low at 0.7165, a broad retracement in the greenback helped the NZD/USD pair to recover and move back to 0.7200 handle. 

Last week, the pair faded a bullish spike to its highest level since May 2015 after RBNZ decided to cut its benchmark interest rates by 25 bps points, which slightly disappointed markets expecting more from the central bank. The pair even failed to benefit from a better-than-expected New-Zealand quarterly retail sales data and disappointing US economic data that led investors to dial back their expectations for the timing of the next Federal Reserve interest-rate hike decision.

A relatively lighter economic calendar is likely to keep volatility under check and the pair might continue to be driven by the overall sentiment surrounding the US Dollar until the release of Empire State Manufacturing Index from the US, later during NA trading session.

Technical levels to watch

On a sustained move above 0.7200 handle, the recovery momentum could get extended back towards 0.7240 strong resistance, above which the pair could make a fresh attempt to reclaim 0.7300 handle and aim towards retesting RBNZ-led swing high resistance near 0.7340 region.

On the flip side, 0.7165 (session low) now becomes immediate support to watch for, which if broken should drag the pair immediately towards 0.7135 intermediate support ahead of 0.7100 round figure mark.