NZD/USD attempts a tepid recovery, back above 0.7050

The NZD/USD pair's recovery from vicinity of 0.7000 psychological is gaining momentum and the pair has jumped to session high level to currently trade back above 0.7050 level.

A broadly stronger US Dollar exerted additional selling pressure on the pair, which was already being weighed down by RBNZ's unexpected announcement to issue a brief update on its economic assessment on July 21 and a lower-than-expected rise in New-Zealand CPI print for the second quarter of 2016. 

The pair, however, got some respite after the latest GDT auction data showed a 1.9% rise in the whole milk powder prices. In absence of any fresh economic releases from the US, the pair might continue to be driven be sentiment surrounding the greenback. However, the pair is unlikely to witness any swift recovery ahead of Thursday's RBNZ update.

Technical levels to watch

From current levels the recovery momentum could get extended to 0.7100 handle, above which the pair seems to recover some lost ground and head towards its next resisstance near 0.7150 level. On the flip side, 0.7000 psychological mark (50-day SMA) remains immediate support to watch for, which if broken opens room for continuation of the pair's near-term downward trajectory towards 100-day SMA support near 0.6915-10 region.