NZD/USD bulls struggling to conquer 200-DMA important hurdle

The NZD/USD pair held on to its daily gains near three-month tops, around the 0.7100 handle, but struggled to extend the momentum further beyond 200-day SMA.

Today's RBNZ financial stability report, which showed that risks to the domestic financial system has receded, provided an additional boost and helped the pair to build on recent upward trajectory over the past three weeks. 

The pair's latest leg of up-move in the past few hours could be attributed to reemergence of US Dollar selling pressure. However, a goodish recovery move around the US treasury bond yields has been the only factor capping further up-move for higher-yielding currencies - like the Kiwi.

The pair quickly retreated after rising to the highest level since early March as traders now look forward  to today's second-tier economic releases from the US. Today's US economic docket features the release of Chicago PMI and Pending Home Sales data. 

Technical levels to watch

On a decisive break through the very important 200-day SMA hurdle, the pair is likely to dart towards its next hurdle near mid-0.7100s before eventually heading towards reclaiming the 0.7200 handle. Alternatively, reversal from current resistance area, and a subsequent drop below 0.7085-80 support, could prompt some profit taking slide back towards 100-day SMA support near 0.7060-55 region.