NZD/USD drops to fresh daily low below 0.7200
|- NZD/USD came under renewed bearish pressure in early American session.
- US Dollar Index stays flat on the day near 90.30.
- 10-year US T-bond yield is staging a rebound following two-day decline.
The NZD/USD pair started the new week on the back foot and extended its slide to a fresh daily low of 0.7182 during the early trading hours of the American session. As of writing, the pair was losing 0.83% on the day at 0.7194.
USD selloff pauses as market mood sours
The risk-averse market environment is helping the greenback find demand on Monday. At the moment, the US Dollar Index is flat on the day at 90.30 and Wall Street's main indexes remain on track to open in the negative territory.
Earlier in the day, the data from China showed that Retail Sales in China rose by 17.7% on a yearly basis in April. This print missed analysts' estimate of 24.9% and weighed on the NZD. On the other hand, the Federal Reserve Bank of New York reported that the Empire State Manufacturing Index declined to 24.3 in May from 26.3 in April.
There won't be any other high-tier macroeconomic data releases from the US in the remainder of the day and the risk perception is likely to continue to impact USD's market valuation.
In the meantime, the benchmark 10-year US Treasury bond yield, which closed the previous two trading days sharply lower, is staging a rebound on Monday and allowing the USD to stay resilient against its rivals.
Technical levels to watch for
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