NZD/USD pushes higher above 0.73 as DXY loses traction

• NZD/USD approaches new multi-month tops above 0.73.
• DXY extends losses toward the critical 90 mark.
• AUD/NZD down more than 60 pips on the day.

The NZD/USD, which finished the previous day 30 pips higher, started the day on a positive on Tuesday and reached its highest level since September 20 at 0.7353. Although the pair started to retrace its rise with the US Dollar Index making a technical correction during the first half of the day, it didn't have a hard time staying in the positive territory.

Despite a lack of fundamental catalysts, the NZD was able to gather strength against the USD earlier today. A sharp drop seen in the AUD/NZD pair seems to be providing an additional boost to the kiwi on Tuesday. The AUD/NZD pair is down nearly 70 pips at the moment.

Meanwhile, after failing to rise above the 90.50 area once again, the US Dollar Index erased its modest daily gains to turn negative recently, allowing the pair to preserve its bullish momentum. At the moment, the DXY is down 0.03% at 90.13.

With no significant macroeconomic data releases in the remainder of the day, the pair is likely to continue to respond to the DXY's fluctuations. 

Technical levels to consider

0.7350 (daily high) could be seen as the first technical hurdle ahead of 0.7415 (Sep. 20 high) and 0.7500 (psychological level). On the downside, supports are located at 0.7265 (Jan. 22 low), 0.7150 (200-DMA) and 0.7070 (Jan. 4 low).