NZD/USD stuck in a range below 0.73 mark, awaits key NFP release

The NZD/USD pair struggled for a firm direction and oscillated in a 10-15 pips narrow trading range below the 0.7300 handle as investors awaited the release of highly-anticipated US monthly jobs data.

Currently trading around 0.7280 region, the pair has managed to hold above 2-week lows touched ahead of Thursday's disappointing ADP report on the US private sector employment. A minor uptick in the US Treasury bond yields, which underpinned the US Dollar demand, has kept a lid on any up-move for higher-yielding currencies - like the Kiwi.

Meanwhile, the prevalent risk-off mood, as depicted by weaker trading sentiment around equity markets and commodity space, also did little to provide any fresh bullish impetus for riskier/commodity-linked currencies, including the New-Zealand Dollar.

Traders seemed reluctant to initiate fresh bets ahead of the keenly watched NFP data, which holds the key to the Federal Reserve's path for monetary policy normalization and would eventually determine the pair's near-term trajectory.

   •  US NFP: Job creation in June probably above trend growth – Danske Bank

Technical levels to watch

On a sustained weakness below 0.7270 area is likely to accelerate the slide back towards two-week lows support near mid-0.7200s, below which a fresh bout of selling pressure would turn the pair vulnerable to head back towards testing the 0.7200 handle. 

Alternatively, decisive break through the 0.7300 handle should lift the pair back towards multi-month highs resistance near 0.7345 level en-route yearly tops resistance near 0.7375 region.