NZD/USD trims early gains to 2-week tops, focus shifts to US GDP/FOMC

• NZD/USD edged higher for the fifth straight session amid some renewed USD selling.
• The upbeat market mood provided an additional boost and remained supportive.
• Bulls took a breather as the focus now shifts to the US GDP report and FOMC decision.

The NZD/USD pair maintained its strong bid tone just below the 0.6100 mark, albeit has retreated around 25 pips from two-week tops set earlier today.

A combination of factors assisted the pair to build on its recent bounce from the vicinity of the 0.5900 round-figure mark and gained some follow-through traction for the fifth consecutive session on Wednesday.

The latest optimism over the declining trend in the number of new coronavirus cases and a move to re-open economies in some parts of the world continued denting the US dollar's status as the global reserve currency.

This coupled with a strong rally in crude oil prices further boosted investors' confidence. This was evident from the upbeat mood around the global equity markets, which further benefitted the antipodean currencies – including the kiwi.

The pair, however, struggled to find acceptance above the 0.6100 mark as bulls took some breather, rather moved on the sidelines ahead of Wednesday's important release of the advance US GDP report for the first quarter of 2020.

This coupled with the latest FOMC monetary policy update, which might provide some clues about the US central bank's future policy path, might influence the USD price dynamics and provide a fresh directional impetus for the major.

Hence, it will be prudent to wait for some strong follow-through buying beyond the 0.6100 mark before positioning for any further near-term appreciating move, possibly beyond monthly swing high resistance near the 0.6130 region.

Technical levels to watch