NZD/USD hits fresh session tops, around mid-0.7200s ahead of GDT price index

   •  USD continues to be weighed down by global trade war worries.
   •  Softer US bond yields/bullish commodities provide an additional boost. 
   •  NZD GDT price index could determine the near-term trajectory.

The NZD/USD pair built on overnight rebound from the 0.7200 handle and is currently placed at fresh session tops, around mid-0.7200s.

Persistent worries over a possible global trade war, stemming out of the US President Donald Trump's recent proposal to impose steep tariffs on imported steel and aluminium, kept the US Dollar bulls on the defensive and helped the pair to regain traction.

This coupled with a mildly softer tone surrounding the US Treasury bond yields provided an additional boost to higher-yielding currencies - like the Kiwi. Moreover, bullish commodity prices, which tend to underpin demand for commodity-linked currencies, remained supportive of the pair's strong bid tone through the mid-European session.

It, however, remains to be seen if the bulls are able to maintain their dominant position and assist the pair to move build on its move back above 50-day SMA support turned resistance, currently near the 0.7260 region.

In absence of any major market moving economic releases from the US, traders are likely to take cues from the New York Fed President William Dudley's scheduled speech. Also in focus would be the release of GDT price index, which could have a lasting effect on the NZ Dollar and eventually provide some fresh directional impetus.

Technical levels to watch

Any subsequent up-move is likely to confront fresh supply near the 0.7275 level, above which the pair is likely to dart towards reclaiming the 0.7300 handle before eventually aiming to test 0.7340 supply zone.

On the flip side, 0.7220 level now seems to protect the immediate downside, which if broken could accelerate the fall towards the 0.7200 handle en-route 200-day SMA support near the 0.7180-75 region.