NZD/USD climbs to session tops, 0.6900 mark back on sight

   “¢   Today’s upbeat NZ retail sales data helped build on Friday’s strong rebound.
   “¢   The prevalent USD selling bias/US-China trade optimism remains supportive.

The NZD/USD pair caught some fresh bids at the start of a new trading week and rallied back closer to last week’s swing high, near the 0.6880-85 region.

A combination of supporting factors helped the pair to build on Friday’s strong rebound from the very important 200-day SMA and continue gaining positive traction for the second consecutive session.  

With investors looking past the RBNZ’s hint over a possible interest rate cut, today’s upbeat NZ retail sales data prompted some follow-through short-covering move amid the prevalent US Dollar selling bias.

This coupled with the growing optimism over a possible resolution of the US-China trade disputes triggered a fresh bout of risk-on trade and provided an additional boost to perceived riskier currencies – like the Kiwi.

It would now be interesting to see if bulls are able to maintain their dominant position or once again fails ahead of the 0.6900 handle in absence of any major market moving economic releases from the US.

Meanwhile, a scheduled speech by the Fed Governor Richard Clarida might influence the USD price dynamics and will be looked upon to grab some short-term trading opportunities later during the North-American session.

Technical levels to watch