NZD/USD finds support below 0.72, still down 0.9% on the day
The NZD/USD pair fell to its three-day low at 0.7190 amid the greenback recovery but lost its bearish momentum in the NA session and recovered back above the 0.72 handle. As of writing, the pair is trading at 0.7205, losing 0.92% on the day.
The US Dollar Index's daily ascend received an additional boost in the early trading hours of the American session following the positive data from the United States. After rising to its best level since May 30 at 97.55, the index gave back some of its earnings and is now at 97.42, up 0.53%. Despite the retreat seen in the greenback, the NZD/USD pair is having a difficult time starting a considerable recovery as the major equity indexes in the U.S. started the day lower, suggesting that the risk appetite is not present in the markets. Furthermore, weaker than expected GDP growth from New Zealand released in yesterday's Asian session continue to keep the investors away from the kiwi.
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The Business NZ PMI will be released from New Zealand in the early trading hours of the Asian session but it's unlikely to impact the price action. The DXY should remain as the primary driver until the end of the week.
Technical outlook
0.7200/0.7190 (psychological level/10-DMA) aligns as the initial support for the pair followed by 0.7170 (Jun. 12 low) and 0.7100 (psychological level). On the flip side, resistances could be encountered at 0.7300 (psychological level), 0.7375 (Feb. 7 high) and 0.7400 (psychological level).