NZD/USD jumps to fresh multi-day tops, upside seems limited

Having dropped to sub-0.6900 level, the NZD/USD pair seems to have regained traction and turned positive for the second consecutive session. 

Today's upbeat Chinese headline trade balance data provided an initial boost and helped the pair to bounce off session lows. Adding to this, a modest pull-back in the US treasury bond yields further benefitted higher-yielding currencies - like the Kiwi, and collaborated to the pair's up-move to multi-day tops near 0.6930-35 region.

The pair moved higher despite of the prevalent positive sentiment surrounding the key US Dollar Index and hence, it would interesting to see if the pair is able to build on the up-move or the runs through some fresh supply at higher levels amid absent fundamental drivers, in-terms of any major market moving economic releases on Monday.

Moreover, investors are also likely to remain cautious ahead of this week's key event risk - RBNZ monetary policy decision, which might eventually keep a lid on any swift up-move for the major.

   •  RBNZ to keep the OCR on hold at 1.75% - Westpac

Technical levels to watch

A follow through momentum could lift the pair towards 0.6970 level (May 3 high) ahead of 50-day SMA hurdle near 0.6980-85 region, which if cleared might trigger a short-covering rally towards 100-day SMA strong resistance near 0.7050-55 region.

On the downside, renewed weakness below the 0.6900 handle is likely to drag the pair back towards 0.6875-70 horizontal support, which if broken would trigger a fresh leg of weakness and accelerate the slide back towards yearly lows support near 0.6840 level.