NZD/USD clocks fresh 10-week tops at 0.7070, US data eyed

• DXY refreshes fresh 4-week lows.
• Tracks Aussie higher.
• US pending homes sales and consumer confidence data – key.

The NZD/USD pair is seen piggy-backing its OZ neighbor, Aussie, now accelerating the advance to hit fresh ten-week tops of 0.7070.

NZD/USD headed to 200-DMA at 0.7132?

The US dollar sees aggressive selling against its main competitors over the last hours, which helps the spot to hit the highest levels since Oct-mid at 0.7070. The USD index slumps to fresh four-week lows of 92.60, as thin trading combined with year-end flows hit the buck.

Meanwhile, the ongoing rally in the major is also on the back of solid gains seen in the AUD/USD pair, as the resource-rich AUD benefits from rallying gold prices. Gold futures on Comex trade +0.23% higher at $ 1290.50, the strongest levels in four weeks.

However, further upside appears may remain limited amid the negative tone seen around the European equities, as oil prices extend its corrective slide from more than two years tops.

Next of note for the pair remains the US pending home sales and consumer confidence numbers for fresh trading impetus.

NZD/USD Technicals

RoboForex Team explains: “The NZD/USD pair is trading at 0.7051 the instrument is still moving above Ichimoku Cloud, which means that it may continue growing. We should expect the price to test the upside border of the cloud at 0.7025 and then continue moving upwards to reach 0.7135. However, the scenario that implies further growth may be canceled if the price breaks the downside border of the cloud and fixes below 0.6960. In this case, the pair may continue falling towards 0.6850.”