NZD/USD: bulls eye the 0.74 handle, risk-on

• NZD/USD: bulls remain in control above the 50-D SMA, eyes on 0.7430's.
• NZD/USD: gets a lift from risk-on and positive geopolitical headlines.

NZD/USD has recently recovered from 0.7353 to 0.7368 as already being one of the strongest G10 currencies overnight. In early Asia, NZD/USD is currently trading at 0.7365, up 0.04% on the day so far, having posted a daily high at 0.7371 and low at 0.7355.

Wall Street bulls take the lead as China is pushing free trade

Kiwi goes bid on Xi

The Kiwi was extending steadily from 0.7325 to 0.7376 and a six-week high on Tuesday while risk assessment turned positive on the geopolitical headlines.  Markets have cheered China's president Xi's comments and renewed pledges to open the Chinese economy of which welcomed such a vow when tweeting that he was “very thankful for President Xi of China’s kind words on tariffs and automobile barriers” and his “enlightenment on intellectual property and technology transfers. “We will make great progress together!” he added.

"Some key resistance levels are approaching, but we suspect additional supply will mean the road higher from here is a slower one," analysts at ANZ said in relation to NZD/USD's upside trajectory. 

NZD/USD levels

There is wide support at 0.7180 and resistance at 0.7440 while the break of the descending daily resistance line has been a positive for bulls as the price extends higher. Technicals remain bullish with higher RSI and momentum and the 21-day MA at 0.7260 should be a hard support in the interim. While above there, the 0.7430's remain compelling.