NZD/USD fails to build on post-CPI rebound, rejected ahead of 0.7400 mark

   •  Digesting NZ CPI-led sharp fall from 4-month tops. 
   •  A modest USD rebound now capping recovery. 

The NZD/USD pair struggled to build on its modest Asian session rebound and faced rejection near the 0.7400 handle.

The pair stalled its disappointing NZ quarterly inflation data-led sharp retracement slide near 0.7325 level and gained some positive traction on the back of a follow-through greenback sell-off. 

The US Dollar bearish pressure, however, now seems to have eased a bit since the early European session and was seen keeping a lid any further up-move. 

Meanwhile, the pair's post-CPI slump, and subsequent failure ahead of the 0.7400 handle could now be looked as initial signs of a short-term top formation. 

Hence, it would be prudent to wait for some renewed strong buying interest before positioning for any additional near-term appreciating move. 

Currently trading around mid-0.7300s, traders now look forward to the release of new home sales data, the only highlight from today's US economic docket, in order to grab some short-term opportunities.

Technical levels to watch

Immediate support remains near the 0.7330-25 region, below which the pair is likely to accelerate the corrective slide even below the 0.7300 handle towards its next support near the 0.7265 level.

On the upside, the 0.7400 handle now seems to have emerged as an immediate hurdle, which if cleared could lift the pair back towards 0.7435 supply zone (yesterday's swing high) en-route the key 0.75 psychological mark.