NZD/USd bulls have sights on the 0.70 handle

Currently, NZD/USD is trading at 0.6910, up 0.62% on the day, having posted a daily high at 0.6925 and low at 0.6852.

Key developments from the NZ economy - UOB

NZD/USD is stable at the highs after a walk to the upside from the aforementioned lows while US data disappoints at the end of April and start of the month. The US GDP was a miss last week while today's PCE and manufacturing gave the green light to antipodean bulls today with price action mirrored in the Aussie as well. Meanwhile, we look to this week's GDT price index along with the Fed and nonfarm payrolls as the main events. "The Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar," explained analysts at Westpac.

NZD/USD levels

NZD/USD's 0.6860 level (Dec-16 low) looks pivotal, according to analysts at ANZ and a sustained break below opens up a push to the mid-0.66s. "This weakness is at odds with local data, but global nuances are dominating."  Meanwhile, and a continuation of the upside and another break higher back towards the 0.70 handle, the previous bulls have the 17th April highs of 0.7035 is sight protecting 0.7060/70 and recent high today around the 200-d ema (0.7067). There is a double bottom at 0.7130 as the mid-Feb lows.