NZD/USD slides further below 0.7200 level, eyeing GDT price index

After posting gains for five consecutive session, the NZD/USD pair is witnessing a corrective move on Tuesday and is now sustaining its weakness below 0.7200 handle.

The pair on Tuesday lost its upside momentum despite of a jump in NZIER Business Confidence index during the second quarter of 2016. The index rose to show the highest level of optimism since the first quarter of 2015. 

The latest leg of weakness is led by reemergence of risk-off trade in global financial markets, which is seen denting demand for riskier assets - like equities and commodity, and eventually dragging commodity-linked currencies - like the Kiwi, lower.

Moreover, traders might also be inclined to take some profit off the table after post-Brexit rally of nearly 200-pips from sub-0.700 touched in the aftermath of the historic Brexit referendum.

Going forward, investors will now look forward to today's GDT price index ahead of key US releases that include - FOMC meeting minutes on Wednesday and Friday's NFP data, in order to determine the near-term direction for the pair.

Technical levels to watch

From current levels, the pair is likely to find some immediate support around 0.7155-50 region, below which the corrective move could get extended towards 0.7100 round figure mark. On the upside, 0.7225-30 remains immediate resistance to clear, which if conquered should boost the pair immediately towards pre-Brexit swing highs resistance near 0.7300 round figure mark.