NZD/USD flirting with lows, below mid-0.7200s ahead of NFP

   •  On offers for the second consecutive day amid global risk-aversion trade.
   •  A modest rebound in the US bond yields/bearish commodities add to the pressure.
   •  Focus remains on the keenly watched NFP and Powell’s scheduled speech.

The NZD/USD pair extended previous session retracement slide from 3-week tops and maintained its offered for the second consecutive session on Friday.

The pair has now retreated over 75-pips from an intraday high level of 0.7322, the highest level since mid-March, and was being weighed down a fresh bout of global risk-aversion trade, which tends to boost the US Dollar's safe-haven appeal against the perceived riskier NZ Dollar.

This coupled with a bearish sentiment around commodity space and a modest rebound in the US Treasury bond yields kept exerting further downward pressure on commodity-linked/higher-yielding currencies - like the Kiwi.

Currently trading just below mid-0.7200s, still holding with modest weekly gains, investors now look forward to the keenly watched US monthly jobs report (NFP) for some fresh impetus. Later during the NY trading session, the Fed Chair Jerome Powell's scheduled speech might also influence the price-action on the last day of the week.

Technical levels to watch

A follow-through selling pressure has the potential to continue dragging the pair towards the 0.7200 handle en-route the very important 200-day SMA support near the 0.7185 region. On the flip side, any up-move beyond 0.7270-75 area now seems to confront some fresh supply near the 0.7300 handle, which if cleared could accelerate the up-move further towards 0.7335 supply zone.