NZD/USD darting towards 100-DMA

Following Monday's range-bound price action, with mild negative bias, the NZD/USD pair gained some traction and is now building on Friday's strong up-move. 

Currently trading at a fresh session peak around 0.7180 region, a slight improvement in investor risk appetite is benefitting risk-associated assets, including higher-yielding currencies - like Kiwi. Today's better-than-expected Chinese manufacturing PMI eased concerns of economic slowdown in the world's second largest economy and is supportive of the prevalent risk-on mood in financial markets.

Moving ahead, today's release of US ISM manufacturing PMI would be looked upon for short-term momentum play ahead of this week's key event risks - Fed monetary policy decision and US monthly jobs report (NFP), which would help investors to determine the next leg of directional move for the pair.

Technical levels to watch

From current levels, 100-day SMA near 0.7195-0.7200 region seems to act as immediate hurdle above which a fresh leg of up-move should boost the pair immediately towards 0.7225-30 resistance. On the downside, 0.7150 (session low) now becomes immediate support to watch, which if broken might accelerate the slide immediately towards 0.7115 horizontal support.