FxWirePro: NZD/USD extends bounce off 200-DMA support, scope for further upside

NZD/USD chart - Trading View 

NZD/USD spikes over 0.50% on the day, breaks above 5-DMA, scope for further gains.

The pair was trading at 0.7150 at around 11:35 GMT, after closing 0.19% higher in the previous session.

Kiwi buoyed on rising bets for another rate hike by the RBNZ providing a goodish lift to the major amid a subdued US dollar price action.

Greenback remains on the defensive after US central bank last week reiterated that the inflation is transitory.

Also, Fed Chair Jerome Powell said that policymakers were in no rush to hike borrowing costs.

Caution prevails in the markets ahead of inflation data from the United States and China this week.

Figures due Wednesday are expected to show U.S. consumer price at 5.8% year-on-year, supporting the Federal Reserve's intent to be patient with interest rate hikes.

Price action has bounced off 200-DMA support on Friday's trade, has edged above 5-DMA. 

Technical indicators show the pair is poised for further gains, scope for retest of 61.8% Fib at 0.7212.