NZD/USD fizzle strong GDP led rally, turns flat at 0.7030

After an early bullish spike to 0.7100 neighborhood during Asian session, the NZD/USD pair erased all of its gains and has now turned negative to currently trade near session low.

Extending its Wednesday's bullish momentum led by Fed inaction, the major jumped to 0.7094 after NZ Q1-2016 GDP surpassed expectations by printing a quarterly growth of +0.7% vs +0.5% estimates. On a yearly basis, Q1 GDP stood at +2.8% vs 2.6% expected and 2.3% prior. 

Wednesday's up-move was also supported by the GDT price index that remained unchanged with average prices at $2339. 

The pair, however, lost upside momentum around 0.7100 handle and a follow-through selling pressure below 0.7000 psychological mark is likely to trigger a near-term corrective move.

Meanwhile, traders will also take cues from some important US economic releases that include - inflation data, Philly Fed manufacturing index and weekly jobless claims data, later during NA session.

Technical levels to watch

Weakness below 0.7000 psychological mark support is likely to get extended towards 0.6960-50 horizontal support, which if broken seems to extend the near-term corrective move towards its next major support near 0.6900 round figure mark.

On the flip side, 0.7045-50 now seems to act as immediate resistance, above which the pair seems all set to dart back towards 0.7100 handle before rising further towards RBNZ swing highs resistance near 0.7145-50 zone.