NZD/USD jumps to session high, eyeing 0.7350 for a fresh break-out

The NZD/USD pair is building on to its strength above 0.7300 handle to currently trade within striking distance of Friday's disappointing NFP-led swing high level of 0.7360.

Following Friday's mildly disappointing US monthly jobs report, diminishing expectations of an eventual Fed rate-hike action in September has been a key factor weighing on the greenback, which remained well offered across the board and is boosting demand for high-yielding currencies - like Kiwi.

However, markets still anticipated that the Federal Reserve would raise interest rates at least once by the end of this year. Moreover, expectations of further rate-cuts by RBNZ in the near-future might restrict further upside and attract some selling pressure around the pair at higher levels.

Next in focus would be the key GDT Price Index, which would trigger a fresh leg of direction move for the pair, and the release of US ISM non-manufacturing PMI that would be looked upon for short-term trading opportunity.

Technical levels to watch

A follow through buying interest above 0.7460 immediate resistance seems to boost the pair immediately towards August monthly high resistance near 0.7480 level, which if cleared should open room for further appreciating move for the pair in the near-term.

On the flip side, 0.7310-0.7300 region now seems to protect immediate downside below which the pair seems to immediately drop to 0.7270 before extending its retracement back towards 0.7215-10 strong support.