In view of FX Strategists at UOB Group, a move below 0.7240 seems unlikely in the short term.
“Expectation for a move above last week’s 0.7370 top was wrong as NZD only managed to touch a high of 0.7361. The weaker than anticipated inflation data released after NY close sent this pair reeling to a low of 0.7261 at the time of writing. The sharp plunge appears to be running ahead of itself and a sustained move below 0.7240 seems unlikely (the stronger level is at last week’s low of 0.7206). Resistance is at 0.7300 but only a move back above 0.7330 would indicate that the current weakness has stabilized”.
“The strong resistance at 0.7370 continues to check NZD strength and the sharp decline after NY close (low of 0.7261 at the time of writing) suggests that the odds for a shift to a bullish phase have all but disappeared (we have held the view that only a NY close above 0.7370 would lead to sustained up-move). From here, the outlook for this pair is still deemed as neutral even though NZD is expected to trade sideways even though the immediate bias is for a probe lower towards the bottom of the expected 0.7220/0.7330 consolidation range”.