NZD/USD surges to 0.7200 handle

The NZD/USD pair is seen extending its Wednesday's recovery momentum back above 0.7100 handle and has now jumped to reclaim 0.7200 level.

On Wednesday, the pair was weighed down by Brexit-led global risk-off sentiment and fall in the GDT price index. However, dovish FOMC meeting minutes assisted the pair to trim its losses and move back above 0.7100 level. 

The pair, on Thursday, maintained its bid tone and gained further traction after RBNZ deputy governor Grant Spencer's assurance to use monetary tools in order to curb housing market.

On Thursday, traders will pay attention to the release of ADP's US private sector employment data for the month of June and would be immediately followed by US weekly jobless claims data. However, key focus would be on Friday's NFP data that is likely to determine momentum for the greenback and eventually drive the NZD/USD major in the near-term.

Technical levels to watch

On the immediate upside, weekly high near 0.7225-30 might continue to act as immediate resistance. A decisive move above this immediate resistance is likely to boost the pair immediately towards recent closing highs resistance near 0.7250 area. On the flip side, 0.7125 level now might now provide some immediate support and is followed by weekly lows support near 0.7080-75 area. A follow through selling pressure now seems to trigger a near-term corrective move for the pair.