NZD/USD Looking for a run to 0.73

• A light calendar for the Kiwi puts China in the driver's seat this week.
• Hopes are high that China will help to cool off current tensions as traders await Xi's response.

The NZD/USD is trading safely within Friday's range after closing a small gap that started the week, hanging around 0.7275.

It's going to be a quiet week for the Kiwi with little on the economic calendar, but late Monday will be seeing the quarterly NZIER Business Confidence report at 22:00 GMT. The NZIER last printed a decline of -12 percent for the last quarter of 2017, and further declines could spook some traders as the New Zealand economy struggles to ramp up.

Focus to stay on trade tensions - ANZ

The NZD was somewhat insulated last week from political tension following upbeat global dairy trade and a budget surplus for the NZ government, but the ongoing tariff spat between the US and China promises to be the main driver this week as traders await China's response to the US' threat of an additional $100B of tariffs. The ebb and flow of the tariff flare-up is being exacerbated by both Trump and China, who continue to swap tit-for-tat duties on each others' goods while also vocalizing a willingness to negotiate.

NZD/USD Levels to watch

The Kiwi is continuing to channel sideways against the US Dollar and the balance is looking to flop to one side or the other, and as FXStreet's own Haresh Menghani noted, "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."