NZD/USD extends RBNZ-led slide, back below 0.7200 handle

The NZD/USD pair maintained its offered tone and remained closer to nearly three-week lows touched in the aftermath of RBNZ announcement. 

Currently trading just below 0.7200 handle, the pair extended its reversal from Tuesday's 3-month tops and came under some additional selling pressure on Thursday after RBNZ held its benchmark interest rates but raised concerns over recent appreciation in the domestic currency. The central bank also surprised markets by delivering a dovish statement, quoting uncertain global outlook, and poured cold water on expectations of rate-hike bets. 

The pair maintained its bearish bias for the third consecutive session but seems to have found some support near 0.7200 handle amid subdued action around the US Treasury bond yields, which tends to benefit higher-yielding currencies – like the Kiwi.

With the key event risk out of the way, market focus shifts to the US fundamentals as traders now look forward to the scheduled release of weekly jobless claims data later during NA session.

Technical levels to watch

A follow through selling pressure below 0.7200 handle has the potential to drag the pair towards 0.7165-60 horizontal support below which the downslide could get extended towards 100-day SMA support near 0.7140 region. 

On the flip side, any recovery above 0.7225 immediate resistance now seems to confront strong resistance near 0.7245-50 horizontal zone, which if cleared is likely to lift the pair back towards 0.7280 resistance area.