NZD/USD building on to its strength above 0.7100 handle
|Continuing with its recovery from multi-week lows, the NZD/USD pair climbed for third consecutive day and is now building on to its gains above 0.7100 handle.
The US Dollar extended its post-FOMC reversal and remained well offered against most of its major counterparts on the back of Wednesday's disappointing release of durable goods orders that now seems to diminish the prospects of an imminent Fed rate-hike in 2016.
Going forward, Friday's BOJ monetary policy decision would provide fresh momentum in the FX market ahead of the US Q2 GDP print.
Trade the US Gross Domestic Product - July 29 GDP Live Coverage
In the meantime, short-term traders are likely to take cues from the prevalent sentiment surrounding riskier assets - like equities and commodities, which would eventually provide some momentum to commodity-linked currencies, including Kiwi.
Technical levels to watch
From current levels, the momentum could get extended but is likely to be restricted by a strong resistance near 0.7125-30 region. A follow through buying interest now seems to assist the pair beyond 0.7200 handle, towards its next major resistance near 0.7220-30 region.
On the flip side, weakness below session through support near 0.7070 level is likely to get extended towards 50-day SMA support near 0.7035-30 region, which if broken might negate prospects of any further recovery for the pair and turn it vulnerable to resume its near-term downward trajectory.
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