NZD/USD making a fresh attempt to reclaim 0.7100 handle

The NZD/USD pair maintained strong bid tone for the third straight session and was seen building on to the ongoing recovery momentum from its worst levels in nearly 4-months. 

Currently trading around 0.7090-85 region, the pair on Monday moved back above the very important 200-day SMA and subsequently tested 0.7100 handle. On Tuesday, the pair was seen attempting a fresh move towards conquering 0.7100 handle amid broad based US Dollar consolidation phase near last week's multi-year highs.

Traders now look forward to today's US economic docket featuring the release of revised US Q3 GDP growth and consumer confidence for short-term trading opportunities. Also in focus would also be speeches from couple of FOMC members - William Dudley and Jerome Powell, which would looked upon for clues over the Fed's near-term monetary policy outlook, beyond December meeting, and might infuse additional volatility during NY trading session. 

On Wednesday, RBNZ's Financial Stability Report and RBNZ Governor Graeme Wheeler's speech would be in focus during early Asian session. However, this week's monthly jobs report from the US (NFP) remains the key event risk and could be the next big fundamental trigger determining the pair's trajectory in the near-term.

Technical levels to watch

Sustained move above 0.7100 handle now seems to boost the pair immediately towards 0.7120 en-route 0.7140 strong horizontal resistance. On the flip side weakness below 0.7060 area might now drag the pair back towards 200-day SMA support near 0.7035 region below which the pair is likely to turn vulnerable to break through 0.70 psychological mark and aim towards retesting recent multi-month lows support near 0.6970 area.