NZD/USD gains further beyond 0.72 handle, spikes to over 3-month tops

   •  Softer US bond yields help build on the appreciating move.
   •  Follow-through momentum needed to confirm bullish bias.

After an initial dip to the 0.7180 region, the NZD/USD pair regained traction and refreshed multi-month tops in the last hour.

The pair built on its bullish momentum and took along some short-term trading stops placed near the 0.7210 region to reaffirm previous session's bullish breakout of a three-day-old trading range. 

Despite a goodish US Dollar rebound, a softer tone around the US Treasury bond yields remained supportive of the strong bid tone surrounding higher-yielding currencies - like the Kiwi.

The momentum once again seemed facing some resistance near the 0.7230 level and hence, it would be prudent to wait for a follow-through buying interest to see if the up-move was backed by genuine buying or turns out to be a stop-run.

Traders would now take cues from the US economic docket, featuring the release of PPI print and the usual weekly jobless claims, due for release during the early NA session.

Technical levels to watch

A sustained move above the 0.7240-45 supply zone now seems to pave the way for an extension of the bullish momentum and assist the pair to reclaim the 0.7300 handle.

On the flip side, any profit-taking slide back below the 0.7200 handle might continue to find fresh buying interest near the 0.7180-75 region, below which the corrective fall could get extended towards 0.7140 intermediate support en-route the 0.7110 region (200-day SMA).