NZD/USD gearing up for a run at 0.73 but downside pressure remains

• The Kiwi is looking to make a fresh attack on the 0.7300 handle as risk appetite rides higher on the week.
• Tuesday'd recovery puts the NZD/USD back on track to keep trying to push higher despite consolidating on the low side in March.

The NZD/USD is trading into current highs in the early Tokyo session, testing 0.7270.

The Kiwi climbed aggressively in Tuesday's early trading and has been bouncing on the ceiling at yesterday's high ever since, looking for room further up as risk appetite returns to markets following the early week's risk run on increased tensions between the US and China as the two countries continue to hurl tariff threats at each other. Markets are beginning to adapt to the 'new normal' in political tension and traders are recovering from risk flights faster as tensions continue to spook risk appetite.

It's a light week for the Kiwi on the macro calendar, but traders will be bracing for the Non-Farm Payrolls jobs report on Friday from the US. Macro figures will be taking a backseat this week as traders focus on broader market sentiment in the run-up to NFP.

NZD/USD Levels to watch

As FXStreet's Ross Burland noted earlier, "the break of the descending daily resistance line is a positive for bulls and the RSI has spiked towards more positive territory with momentum behind the bid. This break and hold above the 21-day MA at 0.7253 will also be a positive for the bulls for the start of the month. The next target is 0.7300 double top area. A deeper support comes in at the March 21 trend low at 0.7156."