NZD/USD rises further and consolidates above key technical level

• NZD/USD set to post highest close in almost three months. 
• Kiwi outperforms on Thursday. 
• A quiet Asian session expected ahead of US jobs report. 

The NZD/USD pair is headed toward the highest daily close since October 17 after having the best performance in three weeks. Risk appetite and weak US Dollar boosted the pair. 

NZD resumes rally after 2-day pause 

The kiwi pulled back during the last two days and on Thursday it resumed the upside. NZD/USD bottomed during the Asian session at 0.7071 and then bounced to the upside. Since then it has been rising constantly, even after upbeat US economic data. It peaked during the American session at 0.7162, an 11-week high. 

The pair is having the fourth weekly gain in-a-row. The bullish tone remains intact after a rally of more than 300 pips that started in the second week of December. Before the current week is over, in the US, the December jobs report will be released. After Thursday ADP data, expectations about a positive surprise with NFP has risen. 

Technical outlook 

NZD/USD is consolidating above the 0.7100/10 area that capped the upside last week and is a relevant technical level. The strong momentum is likely to remain in place as long as price holds above 0.7055/60 (100-SMA). Below that level supports are seen at 0.7020/30 and 0.6965.  To the upside, above 0.7160 the next key level is 0.7200 (Dec 13, 16 & 17 highs) followed by the strong resistance 0.7240.