NZD/USD jumps back closer to Friday’s two-month highs

Having posted a session low near 0.7038, the NZD/USD pair regained traction and moved back closer to over two-month highs touched on Friday.

Currently trading around 0.7065-70 band, testing session tops, market seems to have digested the latest news of N. Korea's latest ballistic missile test, with subdued action around the US treasury bond yields helping the pair to move back above 100-day SMA.

Meanwhile, a mildly positive tone surrounding the US Dollar, against the backdrop of Friday's upward revision of the US GDP growth numbers, which although did little to stall the pair's up-move but seems to be the only factor keeping a lid on the any further up-move.

   •  USD: Bull move is over? - BBH

With the US markets closed in wake of the Memorial Day holiday, the US bond yields dynamics is likely to act as an exclusive driver of the pair's movement on Monday. 

From a technical perspective, sustained trade above 100-day SMA resistance seems to point towards continuation of the pair's near-term upward trajectory. 

Technical levels to watch

Bulls would be eyeing for momentum beyond 0.7075 region (Friday's high), above which the pair seems all set to surpass the 0.7100 handle and head towards testing the very important 200-day SMA hurdle near 0.7115 region.

On the flip side, 0.7045-40 area now becomes immediate support to defend, which if broken is likely to accelerate the slide back towards the key 0.70 psychological mark.