NZD/USD drops to key support on risk-off, RBNZ Governor Orr's comments
|- NZD/USD tests former resistance-turned-support at 0.7315.
- Rising yields weigh over stocks and put a bid under the US dollar.
- RBNZ's Governor Orr says negative rates are an option.
NZD/USD extends Thursday's decline as the continued rise in the government bond yields keeps risk assets under pressure.
The Kiwi printed lows below the former resistance-turned-support of 0.7315 (Jan. 6 high) a few minutes before press time, having put in a multi-year high of 0.7464 on Thursday.
The 10-year US Treasury yield clocked a fresh 12-month high of 1.55% during the overnight trade, taking the year-to-date gain to over 50 basis points and spurring a rotation out of and retreat in stocks. The S&P 500 fell nearly 2.5%, putting a haven bid under the US dollar and pushing NZD/USD lower.
Reserve Bank of New Zealand's Governor Orr said early today that negative rates are an option, seemingly adding to bearish pressures around the NZD. The US airstrike on an Iranian-backed militant group in Syria likely boosted haven demand for the greenback.
NZD/USD is currently trading near 0.7350, representing a 0.25% drop on the day. Support at 0.7315 could be breached if the US yields continue to rise.
Technical levels
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