NZD/USD: Aggressive selling drags it closer to 0.7200

The retreat from 0.73 handle gained further traction in mid-Asia, sending NZD/USD sharply lower towards 0.7200 levels, with bulls completely ignoring higher oil prices.

NZD/USD sold-off near 0.7300

Currently, the NZD/USD pair drops -0.58% to 0.7230, hovering within a striking distance of session lows struck at 0.7226 some minutes ago. The Kiwi came under renewed selling pressure over the last hour, after RBNZ announced the release of its new monthly economic assessment report next Thursday. Markets cast a doubt over New Zealand’s growth prospects, and call for a rate cut at RBNZ’s next meeting in August.

Besides, no major catalyst is seen behind the latest leg lower, while New Zealand non-resident bond holdings for June dropped 67.4% versus previous 68.5%. The major remains unperturbed by rallying oil prices, as focus remains on the US macro news and China GDP figures lined up for release in the sessions ahead.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7306/10 (11 & 10 Jul high), above which it could extend gains to 0.7329 (week ended May 24 2015 high). To the downside immediate support might be located at 0.7200 (round figure) and from there to at 0.7182 (20-DMA).