NZD/USD defends 100-DMA for the time being, focus remains on NFP

The NZD/USD pair once again managed to catch some fresh bids near 100-day SMA immediate support and is currently placed near session tops around 0.7075-80 band.

Spot reversed majority of previous session's losses led by poor Chinese manufacturing PMI, further aggravated by upbeat ADP report on US private sector employment and ISM manufacturing PMI print. A fresh wave of global risk-on, as depicted by strong bullish sentiment surrounding equity markets and further reaffirmed by lack of follow through up-move in the US treasury bond yields, was seen extending support to higher-yielding currencies - like the Kiwi.

Meanwhile, traders seemed to have largely ignored weaker commodity prices, with broader market risk-sentiment acting as an exclusive driver of the pair's strong recovery through Asian session on the last trading day of the week. 

It, however, remains to be seen if the pair is able to build on the up-move amid rising prospects for an eventual Fed rate-hike action this month, especially after yesterday's blowout private jobs data. Hence, focus would remain on today's official employment report (NFP), which should provide fresh impetus for the pair's near-term trajectory.

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Technical levels to watch

A follow through up-move now seems to confront immediate resistance at the very important 200-day SMA near 0.7100-05 region, which if conquered should accelerate the up-move towards 0.7155-60 resistance en-route the 0.7200 handle.

On the flip side, 100-day SMA near 0.7060-55 region remains immediate strong support to defend, which if broken might trigger a short-term corrective slide towards 0.7025 intermediate support ahead of the key 0.70 psychological mark.