NZD/USD soars to fresh multi-month highs ahead of Yellen speech

The NZD/USD pair maintained its strong bid tone and surged to a fresh 15-month high level of 0.7368 following a downward revision of the US GDP growth.

Data released from the US showed economy registered at a modest growth of 1.1% annualized rate as compared to 1.2% originally estimated. Although, the revision was in-line with market expectations but the greenback weakened across the board as market seemed convinced that lackluster economic growth figure would force the Fed to refrain from raising interest-rates in the near-future.

Hence, market attention would remain on the Federal Reserve Janet Yellen's speech at Jackson Hole symposium, which if fails to provide clues over the timing of next Fed rate-hike decision should weigh heavily on the greenback.

Technical levels to watch

On a sustained move back above 1.7350 area, bulls would be aiming to reclaim 0.7400 handle before extending its upward trajectory further towards its next major resistance near 0.7450-60 region. On the downside, 0.7300 round figure mark now becomes immediate support to defend, which if broken decisively should drag the pair below 0.7270-60 intermediate support towards testing an important support near 0.7210-0.7200 handle.