NZD/USD: Bulls regaining ground on 0.70 handle

The New Zealand dollar is extending its recovery versus the American dollar in mid-Asia, lifting NZD/USD from just ahead of 0.70 handle back towards 50-DMA at 0.7035.

Currently, the NZD/USD pair jumped back on the bids and changes hands around 0.7025/26 band, as the recovery in USD, when gauged against a basket of major currencies, appears to have stalled, with the USD index having faced rejection near 101.75 region.

Moreover, muted trading activity around the US treasury yields also boosts the demand for the NZD as an alternative higher investment asset. Meanwhile, markets shift their focus towards the US fundamentals, with the much-awaited NFP data lined up for release later in the NA session.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7035 (50-DMA), above which it could extend gains to 0.7050 (psychological levels) and from there to 0.7091 (daily R2). To the downside immediate support might be located at 0.6973 (5-DMA) and from there to at 6953/40 (10 & 20-DMA), below which 0.6919 (daily S2) would be tested.