NZD/USD turns neutral, eyeing Brainard’s speech for fresh impetus

Having posted a session high at 0.7345, the NZD/USD pair turned lower and dropped to test 20-day SMA near 0.7300 handle before retracing few pips to currently trade in neutral territory at around 0.7320 region. 

Last week, the pair snapped its six days of winning streak and reversed sharply from a 16-month high level as hawkish comments from FOMC member Eric Rosengren on Friday fueled speculations of an eventual Fed rate-hike action, as early as in September.

Against the backdrop, the pair traded lower for major part of the European session but has managed to bounce-off 20-day SMA support as traders now await for a speech from dovish FOMC member Lael Brainard, later during the day, for fresh inputs over the timing of next Fed rate-hike action. 

Technical levels to watch

On a sustained weakness below 20-day SMA support near 0.7300 handle, the pair could be headed back towards 0.7220 support area with intermediate support near 0.7260 level. Alternatively, momentum above session high resistance near 0.7245-50 area should assist the pair intially towards 0.7385 resistance before making an attempt to reclaim 0.7400 handle.