NZD/USD extends recovery to session high near 0.6950

After an initial dip below 0.6900 handle, the NZD/USD pair caught fresh bids and gained over 60-pips from session low.

Currently trading around 0.6950 region, broad based US Dollar retracement from 14-year peak seems to have negated the bearish pressure in wake of Wednesday's dismal GDT price index. Moreover, upbeat sentiment surrounding commodity space also collaborated to the pair's recovery from sub-0.6900 level. 

Investors on Wednesday keenly await for the release of minutes from the Federal Reserve’s most recent meeting, when the central bank decided to raise interest rates for the first time since Dec. 2015 and forecasted three rate-hikes for 2017. Should the minutes reaffirm projected rate-hike actions, it is likely to attract fresh selling pressure around higher-yielding currencies - like the Kiwi. 

Technical levels to watch

A follow through buying interest above 0.6960 resistance has the potential to continue boosting the pair further towards 0.7000 psychological mark ahead of its next major hurdle near 0.7035-40 region. On the flip side, weakness back below 0.6915 immediate support is likely to drag the pair back towards session lows support near 0.6885 region en-route multi-month lows support near 0.6860 region.