NZD/USD corrects from 3-week tops, weakens back below 0.73 handle

•  A modest USD rebound/pickup in US bond yields prompt profit-taking.
   •  The retracement could be categorized as corrective in nature.
   •  US weekly jobless claims eyed for short-term trading impetus.

After an initial uptick to 0.7322 area, the NZD/USD pair met with some fresh supply and has now retreated over 40-pips from session tops.

Currently hovering around the 0.7280-85 region, the pair has now eroded a part of previous session's strong up-move, which marked a bullish breakthrough a short-term descending trend-line resistance and 50-day SMA. 

A modest US Dollar uptick, supported by a goodish pickup in the US Treasury bond yields, was seen as one of the key factors weighing on higher-yielding currencies - like the Kiwi. 

In addition to this, possibilities of some profit-taking, especially after the latest leg of an upsurge of 125-pips over the past two-trading session, could have further collaborated to the pair's retracement slide from three-week tops. 

Traders now look forward to the release of weekly jobless claims data for some short-term trading impetus but the key focus would remain on the keenly watched US monthly jobs report (NFP), which might help determine the next leg of directional move.

Technical levels to watch

Any subsequent retracement is likely to find support near the 0.7240 level, below which the pair seems vulnerable to head back towards the 0.7200 handle en-route the very important 200-day SMA support near the 0.7185 region.

On the flip side, momentum back above the 0.7300 handle is likely to confront some fresh supply near the 0.7330 level, which if cleared might trigger a short-covering bounce and continue lifting the pair further towards the 0.7400 handle.