NZD/USD rebounds to hit fresh 10-week tops, 0.7100 closer

• Resilient to DXY rebound.
• Benefits from higher oil prices, risk-on.
• US data in focus.

Having consolidated briefly around 0.7070 levels in the overnight trades, the NZD/USD pair caught a fresh bid-wave and rebounded sharply in a bid to refresh ten-week tops near 0.7080 levels.

NZD/USD on its way to 200-DMA at 0.7132

Despite a minor-recovery seen in the US dollar against its main competitors, the Kiwi holds ground and remains strongly bid amid better sentiment towards risk assets, as reflected by higher Asian equity markets, which trade at one-month tops.

Also, the major derives support from its OZ counterpart, Aussie, which trades firmer on positive commodities’ prices, with copper sitting at four-year tops and gold prices at four-week highs.

Moreover, positive oil prices, in response to large API crude stocks draw, further collaborate to the upside in the resource-linked NZD. Meanwhile, thin trading remains the key theme so far this week, providing extra legs to the bullish momentum seen around the spot, with the key 200-DMA resistance of 0.7132 in sight.

Markets now look forward to a fresh batch of the US economic releases due later tonight, especially after yesterday’s upbeat US pending home sales data and optimistic consumer confidence.

NZD/USD Technicals

The pair finds next resistances at 0.7100 (round figure), 0.7132 (200-DMA) and 0.7150 (psychological levels). Meanwhile, the supports are located at 0.7044/33 (5 & 100-DMA), 0.7000 (key support) and 0.6974 (20-DMA).