NZD/USD keeps the red below 0.73 handle

The NZD/USD pair remained under some selling pressure for the second consecutive session on Tuesday and dropped to 4-day lows near 0.7260 region, albeit has managed to recover few pips thereafter.

The pair extended its corrective slide from near 5-month tops touched yesterday and maintained its softer tone below the 0.7300 handle amid persistent pick up in the US Treasury bond yields, which tend to weigh on higher-yielding currencies - like the Kiwi.

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Meanwhile, the pair has failed to benefit from the latest NZIER Quarterly Survey of Business Opinion, showing Q2 business confidence held steady with a net 18% of businesses expecting better economic conditions over the coming months, with the US bond yield dynamics acting as an exclusive driver of the pair's movement through early European session on Tuesday.

With the US markets closed on Tuesday in observance of the Independence Day, traders would now take cues from today's release of GDT Price Index in order to grab some short-term trading opportunities ahead of this week's important releases - FOMC meeting minutes on Wednesday and the keenly watched NFP on Friday.

Technical levels to watch

A follow-through selling pressure below 0.7260 level is likely to drag the pair towards 0.7220-15 intermediate support en-route the 0.7200 handle. On the upside, any up-move now seems to confront immediate resistance near the 0.7300 handle, above which the pair is likely to make a fresh attempt to conquer multi-month highs resistance near 0.7345 region and aim towards testing yearly tops near 0.7375 level.