NZD/USD well-bid near session high around mid-0.70s

The NZD/USD pair remained well bid through mid-European session and was seen building on to its momentum back above mid-0.7000s.

Following the US President Donald Trump's failure to gain enough support to repeal and replace Obamacare, growing market skepticism over his ability to deliver on the promised tax cuts and infrastructure spending triggered a broad based US Dollar sell-off. 

This coupled with a continuous slide in the US treasury bond yields further collaborated towards boosting demand for higher-yielding currencies - like the Kiwi, and helped the pair to extend Friday's recovery move from sub-0.70 level.

With absent fundamental drivers, in-terms of any market moving economic releases, a scheduled speech by the Chicago Fed President Charles Evans would now be looked upon for some immediate respite for the US Dollar bulls.

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Technical levels to watch

Immediate resistance is pegged near 0.7075 level, which if cleared has the potential to lift the pair towards 100-day SMA hurdle near the 0.7100 handle en-route 0.7140-50 confluence resistance (50 & 200-day SMAs).

On the downside, retracement back below 0.7030-25 immediate support now seems to drag the pair to 0.6985 support area ahead of mid-0.6900s support area.