NZD/USD dips below 0.7250, eyeing Chinese trade for fresh impetus

After failing to sustain its strength above 0.7300 handle, the NZD/USD pair is extending its reversal from Tuesday's high level of 0.7325 to currently trade near session low, below 0.7250.

Global risk-on sentiment and a broadly weaker US Dollar helped commodities recover on Tuesday and eventually benefited commodity-linked currencies - like Kiwi. The rally, however, was stalled after St. Louis Fed President James Bullard reiterated the prospects of a Fed rate-hike later during this year. 

Moreover, traders also seemed to have turned cautious ahead of the key macroeconomic releases from China, slated for release of Friday, preceded by the much awaited BOE monetary policy decision on Thursday. 

Technical levels to watch

From current levels, 0.7215-10 area (nearing 0.7200 handle) is likely to extend immediate support, which if broken is likely to drag the pair towards 0.7120 horizontal support. 

On the flip side, strong bullish momentum above 0.7300 round figure now seems to pave way for extension of the pair's near-term upward trajectory towards its next major resistance near 0.7530 with intermediate resistance around 0.7400 region.