NZD/USD on the verge of breaking below 0.7300 handle

The NZD/USD pair erased all of its early tepid recovery gains and turned negative to currently trade within striking distance of 0.7300 handle. 

Global risk-off sentiment is weighing on commodities and denting demand for commodity-linked currencies - like the Kiwi. Moreover, the greenback continues to be underpinned by rising expectations of an eventual Fed rate-hike move in September and is exerting further selling around the major. 

Next in focus would be speech from the Fed Governor Lael Brainard, which would be looked upon for fresh clues over the Fed's next monetary policy action and should provide further impetus for the pair's near-term direction ahead of Chinese data on Tuesday and New-Zealand GDP print later during the week. 

Technical levels to watch

A follow through selling pressure below 0.7300 handle, also coinciding with 20-day SMA, seems to drag the pair immediately towards 0.7280 ahead of 0.7250 support. On the upside, recovery back above session high resistance near 0.7340-50 region might now confront resistance at 0.7380 before the pair make a fresh attempt to reclaim 0.7400 handle.