NZD/USD climbs to fresh session highs above 0.6600

• US Dollar Index continues to erase Friday's gains.
• Upbeat data from China helps NZD gain traction on Monday.
• Coming up: IHS Markit Manufacturing and Services PMI reports from US.

The NZD/USD pair registered its highest weekly close since mid-July at 0.6600 last Friday and started the new week on a positive note supported by the upbeat macroeconomic data releases from China. As of writing, the pair was trading at fresh session highs near 0.6610, adding 0.2% on a daily basis.

According to the data published by the National Bureau of Statistics of China, Retail Sales increased by 8% on a yearly basis in November to surpass the market expectation of 7.6% and Industrial Production expanded by 6.2% in the same period to ease concerns over a slowdown in the world's second-largest economy.

Additionally, the latest headlines surrounding the US-China phase-one trade deal suggested that China has agreed to $40-$50 billion worth of agricultural purchases from the US but hasn't publicly admitted it to avoid backlash to help the trade-sensitive antipodeans gather strength against its rivals.

Eyes on US and NZ data

On the other hand, the US Dollar Index reversed its course following Friday's rally and is now testing the 97 handle. During the American session on Monday, the IHS Markit will release the preliminary Manufacturing and Services PMI data from the US. Investors will also pay close attention to fresh developments on the trade front. In the early trading hours on Tuesday, ANZ Activity Outlook and ANZ Business Confidence data from New Zealand will be looked upon for fresh impetus.

Technical levels to consider