NZD/USD clings to strong gains near weekly tops

The NZD/USD pair continued gaining traction for the second consecutive session and was seen building on previous session's strong recovery from three-week lows.

The US Dollar remained under some selling pressure on Thursday, in wake of Wednesday's perceived dovish testimony by the Fed Chair Janet Yellen. This coupled with a continuous slide in the US Treasury bond yields further benefitted higher-yielding currencies and lifted the pair back closer to the top end of the weekly range near the 0.7300 handle. 

Also collaborating to the pair's strong up-move on Thursday was stronger Chinese trade figures, which eased concerns of an economic slowdown in the world's second-largest economy. Being New-Zealand’s biggest export destination, upbeat Chinese data provided an additional boost to the major.

   •  China’s export and import growth to moderate in the coming months - Nomura

Moving ahead, traders now look forward to the US economic docket, featuring the release of weekly jobless claims and the latest PPI print, which would be looked upon to grab some short-term trading opportunities.

Technical levels to watch

Bulls would be eyeing for a strong follow through buying interest beyond the 0.7300 handle, above which the pair is likely to dart towards multi-month highs resistance near 0.7345 level before eventually moving towards yearly tops resistance near 0.7375 area.

On the flip side, 0.7275 level now seems to act as immediate support, which if broken could drag the pair back towards session lows support near mid-0.7200s en-route recent daily closing lows support near 0.7225-20 region.