NZD/USD sits at session tops, above 0.7300 mark

Having touched a 3-day low level of 0.7217, the NZD/USD pair took a sharp U-turn and spiked to session tops near the 0.7320 region.

The pair's strong up-move during early European session lacked any fundamental driver and could be solely attributed to a modest US Dollar retracement.

However, a strong follow through positive momentum around the US Treasury bond yields could hinder further up-move and keep a lid on higher-yielding currencies - like the Kiwi.

Moreover, the up-move has stalled near the 0.7320-30 region, which has been acting as a strong barrier since mid-August. Hence, it would be prudent to wait for a decisive break through the mentioned hurdle before positioning for any further up-move for the major.

Next on tap would be the release of JOLTS Job Openings data from the US, while the key focus would be on important US macro data, including the latest inflation figures and monthly retail sales data, due for release later this week. 

Technical levels to watch

A strong follow through buying interest beyond 0.7335 level could trigger a short-covering rally towards 0.7370 intermediate resistance en-route the 0.7400 handle.

On the downside, renewed weakness below 0.7260-55 area would expose 100-day SMA support near the 0.7200 handle ahead of 0.7170 horizontal support.