NZD/USD extends recovery momentum to 0.6950 region

The NZD/USD pair maintained its bid tone for the second consecutive session and was seen building on to its recovery momentum back above 0.6900 handle.

Currently trading around 0.6945 region, the pair caught fresh bids on Thursday amid broad based US Dollar weakness in wake of Wednesday's disappointing pending home sales data from the US. With no other fundamental drivers behind Thursday's move, the pair's latest leg of recovery could be attributed to some unwinding of short-positions amid thin liquidity conditions on the back of year-end holiday season. 

Later during NA session, US economic docket that includes - weekly jobless claims and goods trade balance, might provide some impetus for short-term traders. 

Technical levels to watch

From current level, the pair is likely to confront resistance near 0.6970-75 region above which the momentum should lift it back towards 0.7000 psychological mark. On the downside, 0.6900 handle now becomes immediate support, which if broken might drag the pair back towards 0.6875 support, en-route multi-month lows support near 0.6835-30 zone.