NZD/USD eases from 2-week highs, retreats to 0.7300 handle

   •  A modest USD rebound prompts some profit-taking at higher levels. 
   •  Weaker commodity prices add to the downward pressure. 
   •  RBNZ Governor’s speech on Tuesday eyed for fresh impetus.

The NZD/USD pair trimmed some of its early strong gains 2-week tops but has still managed to hold in positive territory for the second consecutive session. 

The pair built on the sluggish US wages growth data-led up-move and touched an intraday high level of 0.7323 during the Asian session on Monday. However, a modest US Dollar rebound prompted some long-unwinding trade and was seen as one of the key factors behind the pair's retracement from higher levels. 

Further collaborating to the pair's retracement, back to the 0.7300 handle, was weaker trading sentiment around commodity space, which tends to dent demand for the commodity-linked New-Zealand Dollar.

Meanwhile, a subdued US Treasury bond yields extended some support and might now help limit the further downside for higher-yielding currencies - like the Kiwi, at least for the time being. 

Investors now look forward to the RBNZ Governor Grant Spencer's speech on Tuesday, which along with this week's important US macro releases would help investors determine the pair's next leg of directional move.

Technical levels to watch

Any subsequent retracement is likely to find support at 50-day SMA, currently near the 0.7280-75 region, below which the pair could slide further below 0.7245 intermediate horizontal support and retest the 0.7200 handle.

On the flip side, 0.7320-25 area now seems to have emerged as an immediate resistance, which if cleared might now assist the pair to aim towards reclaiming the 0.7400 handle with some intermediate resistance near the 0.7365-70 region.