NZD/USD hits fresh 10-month highs, near mid-0.7400s

The NZD/USD pair rallied hard for the fourth consecutive session on Friday and built on previous session's fresh bullish break through the 0.7400 handle.

Yesterday's push through the 0.7400 handle was driven by broad based US Dollar sell-off, primarily led by a sharp upsurge in the EUR/USD pair following the ECB President Mario Draghi's post-ECB meeting press briefing. 

Adding to this, the ongoing slump in the US Treasury bond yields further benefitted higher-yielding currencies and collaborated to the pair's strong up-move of over 150-pips from weekly lows touched on Tuesday, in the aftermath of disappointing NZ quarterly CPI print. 

Today's follow through bullish traction could also be attributed to upbeat remarks by the New Zealand Finance Minister Steven Joyce and stronger domestic data for June - a sharp m-o-m rise in new tourist arrivals and credit card spending.

Meanwhile, possibilities of some big stops being triggered on a decisive break through the 0.7400 handle might have also collaborated to the strong bid tone surrounding the major.

Against the backdrop of fresh political jitters coming out of the ongoing investigations into the US President Donald Trump’s campaign ties with Russia, an extension of the pair's strong bullish momentum, towards the key 0.75 psychological mark, now seems a distinct possibility.

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Technical levels to watch

Immediate hurdle is seen near mid-0.7400s, above which the pair is likely to head towards testing 2016 yearly highs resistance near 0.7485 level before eventually aiming to conquer the 0.75 handle. 

On the flip side, any pull-back from higher levels might now find immediate support near the 0.7400 handle, which if broken might trigger a short-term corrective slide towards 0.7360-55 horizontal support.