NZD/USD surrenders a major part of early gains, back below mid-0.6500s as focus shifts to RBNZ

• Bulls failed to capitalize on upbeat NZ jobs data-led early positive move.
• A goodish pickup in the USD demand prompts some selling at higher levels.
• Repositioning trade - ahead of RBNZ, might infuse some intraday volatility.

The NZD/USD pair surrendered a major part of its early strong gains and has now retreated over 50-pips from multi-day tops, set earlier this Tuesday.
 
The pair built on the previous session's intraday recovery from sub-0.6500 level and caught some aggressive bids during the Asian session on Tuesday following the release of stellar New-Zealand employment details, showing that the unemployment rate dropped to 3.9% in the second quarter of 2019 as compared to 4.2% previous and 4.3% expected.
 
Additional details revealed that employment increased by 0.8% during the reported period, up sharply from an upwardly revised reading of -0.1% in the previous quarter. This coupled with some signs of stability in the global financial markets provided an additional boost to perceived riskier currencies - like the Kiwi and collaborated to the pair's goodish intraday up-move.
 
The positive momentum, however, faltered just ahead of the 0.6600 handle, with a goodish pickup in the US Dollar demand - supported by rebounding US Treasury bond yields, prompting some fresh selling at higher level, though the downside is likely to remain limited ahead of the latest RBNZ monetary policy update during the Asian session on Wednesday.
 
Heading into the key event risk, some repositioning trade ahead of the key event risk might trigger some intraday volatility and help traders grab short-term trading opportunities amid absent relevant market moving economic releases from the US.

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