NZD/USD slipping into 0.7350 as risk appetite takes a step back

• The Kiwi is slipping back after Tuesday's rally.
• Broad market sentiment is beginning to rebalance after Xi's Boao Forum comments.

The NZD/USD has found a floor after falling in the Asia markets, trading up over 0.7350. The Kiwi reached 0.7375 before declining as markets reconsider their risk appetite stance on China.

Broader markets rallied on Tuesday after China's Xi Jinping expressed a willingness to open the Chinese economy to foreign investors and was willing to resolve trade disputes with negotiation. The rally couldn't hold it into Wednesday though, and now traders are rethinking their hope levels as the tariff trade spat between the US and China is still unresolved, with threats of impending tariffs on both sides.

NZD/USD Levels to watch

As FXStreet's Omkar Godbole noted earlier, "a break above 0.7376 (overnight high) could see spot test supply around resistance lined up at 0.74 (multiple daily highs) and 0.7437 (February high). On the downside, acceptance below 0.7355 (March 13 high) may allow a deeper pullback to 0.73 (psychological mark), although only a close below 0.7266 (Monday's low) would abort the bull view."