NZD/USD closes in on 0.70 handle

The NZD/USD pair was finally able to break out of the recent consolidation channel with the greenback posting losses against its major competitors. At the moment the pair is up 0.11 on the day at 0.6980.

Despite the weak greenback, the pair is struggling to extend the upsurge as the risk sentiment remains low on geopolitical concerns, putting a cap on kiwi's gains. The US Dollar Index is staying dangerously close to 100 level recording a loss of more than 0.5% on the day.

The latest data from New Zealand showed that the Business NZ PMI in April improved to 57.8 from 55.2 but couldn't help the pair bullish momentum. Later in the Asian session, unemployment data from Australia could be the next catalyst as it tends to cause sharp movements in the AUD/USD pair.

Technical outlook

The pair faces the initial hurdle at 0.7000 (psychological level) followed by 0.7080 (100-DMA) and 0.7140 (200-DMA). On the flip side, with a break below at 0.6910/00 (daily low/psychological level), the pair could target before 0.6860 (Dec. 23 low) and 0.6800 (psychological level).