NZD/USD recovery gains further traction beyond 0.6900 handle

The NZD/USD pair staged a sharp recovery on Wednesday and built on to its strong bullish momentum above 0.6900 handle.

Currently trading around 0.6930-25 region, testing fresh session tops, a mild US Dollar retracement provided an initial lift to the pair. The recover got an additional boost on a decisive move above 0.6900 handle, which might have triggered some stops on the way. 

Meanwhile, a sharp slide in the US Treasury bond yields is further seen benefiting higher-yielding currencies - like the Kiwi. Adding to this, holiday-thinned market liquidity conditions also seems to have contributed to the pair's strong up-move on Wednesday.

Looking ahead, traders on Wednesday will take some short-term trading cues from the US pending home sales data due later during NA session.

Technical levels to watch

A follow through buying interest has the potential to continue boosting the pair further towards 0.6970-75 resistance area, ahead of 0.7000 psychological mark. On the downside, renewed weakness below 0.6900 handle, leading to a subsequent break below 0.6875 support, is likely to accelerate the slide, even below multi-month lows support near 0.6860 region, towards testing its next major support near 0.6800 round figure mark with some intermediate support near 0.6835-30 region.