NZD/USD off highs, stalls tepid recovery move near 0.7100 handle

The NZD/USD pair extended overnight steady recovery move from fresh 4-month lows but struggled to move back above the 0.7100 handle.

The pair has now retreated around 20-pips from session tops and is currently trading with only minor gains around 0.7080 level. Lingering concerns over the political uncertainty in New-Zealand, where in a final vote count in the country's tight general election failed to identify a clear winner capped the pair's initial up-move.

Adding to this, a strong follow through uptick in the US Treasury bond yields, which although has failed to provide any bullish impetus to the US Dollar, further kept a lid on any additional gains for higher-yielding currencies - like the Kiwi. 

The pair, however, has managed to hold in positive territory for the second consecutive session as investors now look forward to the key FOMC meeting minutes, which would be a key determinant of the greenback's move and eventually provide fresh impetus for the pair's near-term trajectory. 

   •  US: FOMC minutes and Fed speak in focus today - TDS

Ahead of today's important event risk, the release of JOLTS Job Openings from the US would also be looked upon for some short-term trading opportunities. 

   •  NZD/USD bearish, now targets 0.7000 – UOB

Technical levels to watch

Immediate support remains near the 0.7060-55 region, below which the pair is likely to accelerate the fall towards the key 0.70 psychological mark ahead of its next major support near 0.6940 area.

On the upside, the 0.7100 handle now seems to have emerged as immediate resistance, which if cleared might trigger a short-covering bounce back towards the very important 200-day SMA, currently near the 0.7155 region.