NZD/USD trims gains, back below 0.7100 handle

The NZD/USD pair trimmed majority of its early gains to 0.7131 and dropped back below 0.7100 handle to currently trade back below 0.7100 handle.

The pair seems to repeat its price action witnessed on Thursday, when the pair initially got a post-FOMC boost and jumped to 8-day high before erasing all of its gains to finally settle in negative territory. 

During early Asian session on Friday the pair climbed to fresh weekly high after a report showed New-Zealand building permits rose by 16.3% m-o-m in June. The pair, however, struggled to sustain its strength and is now trading with only marginal gains.

Investors now turn their attention to Friday's US growth numbers, later during NA session, which is expected to show an annualized growth of 2.6% during the second quarter of 2016 as compared to 1.1% growth recorded in the first quarter. 

Trade the US Gross Domestic Product - July 29 GDP Live Coverage

Technical levels to watch

From current levels, weakness below session low support near 0.7060 seems to drag the pair immediately towards 50-day SMA support near 0.7030 region, which if broken decisively is likely to turn the pair vulnerable to extend its near-term slide towards 100-day SMA support near 0.6935-30 region.

On the flip side, sustained strength above 0.7110-15 resistance, leading to momentum above session high resistance near 0.7130, is likely to open room for continuation of the pair's near-term upward trajectory towards its next major resistance near 0.7215-20 zone.