NZD/USD well-bid for fourth straight session

The NZD/USD pair extended its near-term upward trajectory for the fourth consecutive session and is now building on to momentum back above 0.7100 handle.

Currently trading around mid-0.7100s, the pair maintained its strong bid tone after RBNZ Governor Graeme Wheeler said that he expected the December CPI to move back to the central bank's target band. Wheeler's comments added on to the upbeat sentiment surrounding the New-Zealand dollar led by receding possibilities of further interest rate cuts in the foreseeable future after RBNZ's highlighted housing market risks in its latest financial stability report. 

Investors on Wednesday will remain focused on the final outcome from OPEC meeting, which might influence investors' risk-appetite and eventually provide impetus for riskier / higher-yielding currencies - like the Kiwi. Meanwhile, today's US economic calendar featuring the releases of ADP report on private sector employment, Fed's preferred inflation gauge - Core PCE Price Index, Chicago PMI and pending home sales would grab attention during NA trading session and would be looked upon for short-term trading opportunities. 

Technical levels to watch

A follow through buying interest above session peak resistance near 0.7160 seems to boost the pair immediately towards 100-day SMA resistance near 0.7195 region ahead of resistance near 0.7228 level (Nov. 11 high). On the downside, 0.7125 level (session low) is likely to drag the pair below 0.7100 handle towards previous resistance, now turned support, near 0.7085 region.