NZD/USD hits fresh multi-month tops post US data

The NZD/USD pair continued gaining traction through early NA session on Friday and built on to its gains further beyond the 0.7300 handle.

Currently trading around mid-0.7300s, the pair’s up-move gathered pace after data released from the US showed Core PCE Price Index rose by 0.1% m-o-m during May, with the yearly rate ticking lower to 1.4% as compared to 1.5% previous. Meanwhile, personal income jumped 0.4% in May, which to some extent got negated by tepid personal spending growth of 0.1% during the record period.

The figures were mostly in-line with consensus estimates and did little to provide an additional boost to the US Dollar’s recovery move from multi-month lows. 

Meanwhile, a subdued action around the US Treasury bond yields remained supportive of the strong bid tone surrounding higher-yielding currency, including the Kiwi, and has been one of the key factors driving the pair to its highest level since early Feb.

Today's US economic docket also features the release of Chicago PMI and Revised UoM Consumer Sentiment Index, which is unlikely to hinder the pair’s well-established uptrend, but would be looked upon to grab some short-term trading opportunities.

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Technical levels to watch

Immediate resistance is pegged at yearly tops near 0.7375 region, above which the upward trajectory could get extended towards reclaiming the 0.7400 handle ahead of its next major hurdle near mid-0.7400s. 

On the downside, any pull-back now seems to find some fresh buying interest near the 0.7300 round figure mark, which if broken could drag the pair back towards 0.7265-60 intermediate support en-route 0.7230 level.