NZD/USD in search of a firm direction, stuck in a tight range

   •  Struggles to build on last week’s rebound from 200-DMA.
   •  Rising US bond yields helps offset positive factors and cap gains.
   •  US ISM PMI eyed for some impetus at the start of a busy week. 

The NZD/USD pair struggled for a firm direction and was seen oscillating within a 15-pips narrow trading range below mid-0.7200s.

A combination of diverging forces failed to assist the pair to build on last week's rebound from the very important 200-day SMA support and led to a range-bound/subdued price action at the start of a new trading week. 

A goodish pickup in the US Treasury bond yields held investors back from buying higher-yielding currencies - like the Kiwi. The negative factor to a larger extent was being negated by some fresh US Dollar selling, led by renewed concerns over a US-China trade war.

This coupled with positive commodity prices underpinned demand for the commodity-linked NZ Dollar and also collaborated towards limiting any further downside, at least for the time being.

A busy week of important macroeconomic data kicks off with the release of US ISM manufacturing PMI, which would be looked upon for some short-term trading impetus later during the early NA session.

Technical levels to watch

Immediate resistance is seen near the 0.7245-50 region, above which the pair is likely to aim towards reclaiming the 0.7300 handle. On the flip side, weakness below 0.7220 level could get extended back towards retesting 200-day SMA strong support, currently near the 0.7190 region.