NZD/USD inching closer to Tuesday's 2-1/2 month high

Having posted a session low at 0.7225 level, the NZD/USD pair caught fresh bids and moved into positive territory for the third consecutive session.

Currently trading around 0.7250 region, the pair remains within striking distance of nearly 2-1/2 month high touched on Tuesday amid persistent US Dollar weakness as investors await to see comprehensive fiscal policy stance of the Trump administration. 

The recovery, however, lacked momentum in wake of resurgent US treasury bond yields, which tends to drive flows away from higher-yielding currencies - like the Kiwi.

With an empty US economic docket, investors will remain focused on the release of quarterly NZ CPI print, scheduled for release during early Asian session on Thursday. 

Technical levels to watch

A follow through buying interest above 0.7275 level seems to accelerate the up-move towards 0.7300 round figure mark above which the pair is likely to head towards 0.7325-30 horizontal resistance ahead of 0.7360-65 hurdle. 

On the flip side, 0.7230 level is likely to act as immediate support, which if broken has the potential to drag the pair back towards 0.7200 handle, en-route 0.7185-80 support area.