NZD/USD rallies to session tops, 0.6600 mark back on sight

   •  Signs of stability in the global financial markets extend some support.
   •  A modest USD pullback prompted some intraday short-covering move.
   •  Traders now eye second-tier US economic releases for fresh impetus.

The NZD/USD pair reversed an early dip to one-week lows and rallied around 40-pips, hitting fresh session tops during the early European session.

With investors still digesting the recent escalation in the US-China trade tensions, some signs of stability in global financial markets extended some support/helped ease the bearish pressure surrounding perceived riskier currencies - like the Kiwi.

This coupled with a modest US Dollar pullback, led by persistent weakness in the US Treasury bond yields might have acted as another factor prompting some aggressive intraday short-covering move and behind the latest leg of an upsurge. 

It, however, remains to be seen if the uptick is backed by any genuine buying or is still seen as a selling opportunity at higher levels as the market focus remains on any fresh trade-related headlines, which remains a sole driver of the broader market risk sentiment.

Later during the early North-American session, the US economic docket - featuring the release of housing market data, the usual initial weekly jobless claims and Philly Fed Manufacturing Index, will now be looked upon for some short-term trading impetus.

Technical levels to watch