NZD/USD building on to its move back above 0.7300 handle

A broad based greenback weakness helped the NZD/USD pair to recover all of its losses recorded on Friday and has now moved back above 0.7300 handle. 

Currently trading at a fresh session high level near 0.7315 region, the pair maintained its strong bid tone despite of Friday's higher-than-expected US CPI print, amid thin liquidity on the back of a holiday in Japanese market. 

With a relatively lighter economic calendar on Monday, attention would remain on this week's major central bank monetary policy decision, which would help investors to determine the next leg of direction move for the pair. The US Federal Reserve is scheduled to announce it monetary policy decision on Wednesday and would be followed by RBNZ rate decision during early Asian session on Thursday. The Bank of Japan decision will also be in focus this week as it is expected to trigger a fresh bout of volatility in the FX market and would eventually drive the pair in the near-term.

Technical levels to watch

From current levels, 0.7325-30 area remains immediate resistance, which if cleared might negate any near-term bearish bias and assist the pair to reclaim 0.7400 handle and head towards testing recent daily closing high resistance near 0.7445-50 region.

On the flip side, 0.7250 area now seems to have emerged as immediate support below which the pair is likely to aim towards testing 50-day SMA support near 0.7215 region before eventually dropping to test its next major support near 0.7100-0.7080 region marking 100-day SMA.