NZD/USD jumps to over 1-week tops, nearing 0.73 handle

   •  NZD catches strong bids on surprisingly positive trade balance data.
   •  Subdued USD demand remains supportive of the strong bid tone.
   •  Traders shrug off rising US bond yields/weaker commodity prices.

The NZD/USD pair continued gaining some positive traction on Monday and build on last week's recovery move from over 2-month lows.

Today's surprisingly positive NZ trade data, coming in to show a surplus on the back of lower imports, helped the pair to catch some strong bids at the start of a new trading week. This coupled with a subdued US Dollar price action, despite easing fears of a full-blown US-China trade war, remained supportive of the pair's strong bid tone. 

Currently trading at over 1-week highs, about to challenge 50-day SMA hurdle near the 0.7285-90 region, traders seemed to have largely ignored a weaker tone around commodity space. Even a goodish pickup in the US Treasury bond yields, which tends to dent demand for higher-yielding currencies - like the Kiwi, did little to hinder the ongoing bullish momentum. 

It would now be interesting to see if bulls are able to maintain their dominant position or the pair struggles to break through the 0.7300 handle amid absent economic releases. Later during the NY session, speeches by influential FOMC members would now be looked upon for some short-term trading impetus.

Technical levels to watch

A follow-through move beyond the 0.7300 handle could get extended towards 0.7330 supply zone, above which the pair seems all set to aim towards reclaiming the 0.7400 handle. On the flip side, the 0.7260-50 area now seems to protect the immediate downside, which if broken might prompt some fresh weakness and drag the pair back towards the 0.7200 handle.