NZD/USD walks back early Thursday's gains

• Kiwi has pulled back after kicking off Thursday with a surprising bull bias.
• A lack of data will see the pair get led through Thursday's session by overall market sentiment.

The Kiwi has let off the gas after climbing in the overnight session, and is currently testing back into 0.7320 after reaching an Asia session high of 0.7334. As noted here, the NZD's recovery is on the puzzling side given the noted risk aversion present in markets today, and it seems that risk-off has reached the NZD/USD.

Equities are still down on the day as Trump's continued tariff drama rattles markets. with traders fearing an all-out trade war brewing. Following Trump's recent steel and aluminum tariffs, the White House is seeking an additional $60B in duties and restrictions on Chinese-made goods. Markets have put risk appetite on the shelf for now as everybody waits to see what Beijing's final reaction will be to the additional tariffs, as well as the European Union's reaction to a 25% duty being slapped on steel bound for the US.

The incoming European session could see a continuation of bullish momentum if the US Dollar gets sold steadily through Thursday, but for now, the Kiwi has settled back while markets decide which way they'd like to go.

NZD/USD Technicals

Yesterday's high of 0.7353 remains the target to beat if the Kiwi's recent bull trend is to continue, but a failure to push higher will see the pair back up into support from the 34 EMA at 0.7275. Topside resistance remains heavy at February's peak of 0.7437, and March's low near the 200-day SMA at 0.7185 will be the floor if bearish momentum comes back into fashion.