NZD/USD bounces off weekly lows, up little around 0.6835
| • Softer US bond yields provide some immediate respite.
• Chinese trade data/commodity prices supportive.
• Keenly watched US jobs data holds the key.
The NZD/USD pair gained some positive traction this Friday and recovered part of previous session's sharp slide to weekly lows.
Today's better-than-expected Chinese trade balance data helped offset a follow-through pickup in the US Dollar demand. This coupled with a modest retracement in the US Treasury bond yields helped ease selling pressure around higher-yielding currencies - like the Kiwi.
Meanwhile, in absence of any fresh domestic data, an uptick in commodity prices extended some additional support to the resource-linked currencies and remained supportive of the pair's modest rebound.
It would now be interesting to see if the pair is able to build on the recovery move or extends its consolidative price action within a 7-day old trading range amid expectations of another solid headline NFP print, due for release later during the NA session.
Technical levels to watch
Immediate resistance is pegged near the 0.6855-60 region, above which the pair could be headed back towards the 0.6890-0.6900 supply zone. A clear break through the mentioned hurdle now seems to lift the pair towards testing 50-day SMA near mid-0.6900s.
On the flip side, 0.6820 level might continue to protect the immediate downside, which if broken could accelerate the fall even below the 0.6800 handle towards Nov. monthly lows support near the 0.6780 level.
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