NZD/USD through 100-DMA barrier, refreshes two-month highs ahead of US macro releases

After an initial dip to 0.70 neighborhood, the NZD/USD pair regained traction and broke through 100-day SMA strong hurdle near mid-0.7000s to fresh two-month tops.

Currently trading around 0.7060-65 region, testing session tops, the pair now seems all set to record a second consecutive week of strong gains and possibly it strongest weekly close since late February. Continuous slump in the US treasury bond yields, following the latest FOMC meeting minutes has been a key factor boosting demand for higher-yielding currencies - like the Kiwi.

Meanwhile, a bout short-covering, after bears failed to drag the pair back below the key 0.70 psychological mark for the second consecutive day, might have also collaborated to the pair's strong up-surge on the last trading day of the week. 

However, a mildly positive tone surrounding the US Dollar, ahead of today's important US macro data seems to have kept a lid on the bullish momentum, at least for the time being. Today's US economic docket features the release of revised GDP figures, durable goods orders and Revised UoM Consumer Sentiment Index, and would be looked upon for some fresh impetus.

Technical levels to watch

Momentum above 0.7070 level has the potential to lift the pair beyond the 0.7100 handle towards testing the very important 200-day SMA hurdle near 0.7110-15 region. On the downside, any retracement back below 0.7045-40 area would now be looked upon as a buying opportunity and hence, should limit any further downslide near the 0.70 handle.