NZD/USD inching closer to 0.6950 important barrier
|The NZD/USD pair traded with positive bias for the second consecutive session and inched closer to its immediate strong hurdle near mid-0.6900s.
The pair gained traction and built on Friday's up-move, despite of the ongoing US Dollar recovery move. With markets seemed convinced that the Fed would eventually raise interest rates in June, a modest up-tick in the US treasury bond yields underpinned the greenback demand but did little to stall the pair's up-move on Monday.
It, however, remains to be seen if the pair is able to break through the 0.6950 strong supply zone as traders would prefer to stay on the sidelines ahead of this week's release of the Fed meeting minutes on Wednesday and NZ annual budget on Thursday.
• NZD/USD: Positive bias for the week, targeting the 0.71 area - Westpac
Later during the day, Fedspeaks would take the centre stage and fresh clues over the central bank's near-term monetary policy outlook would provide fresh impetus for higher-yielding currencies - like the Kiwi.
Technical levels to watch
On a sustained move above mid-0.6900s, leading to a subsequent break through 50-day SMA hurdle near 0.6960 region, is likely to trigger a short-covering rally towards the key 0.70 psychological mark en-route the next major hurdle near 0.7025-30 area.
Alternatively, reversal from current resistance level now seems to find some immediate support near the 0.6900 handle, below which the pair is likely to break below 0.6880 support level and head towards testing 0.6850-45 important support.
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