NZD/USD testing Tuesday's low in overnight session
|- NZD/USD drifting lower for the third day straight.
- Rising bond yields driving up the USD.
NZD/USD shifted lower on Tuesday, seeing 0.7340 in the overnight session.
The US Dollar is gaining against the major currencies as bond yields are on the rise, with the 2 and 10-year Treasuries trading near multi-year highs as inflation fears begin to take their toll on financial markets.
The Kiwi was unmoved following a statement from Reserve Bank of New Zealand (RBNZ) Governor Grant Spencer, and as noted by an ANZ piece, "the RBNZ Governor appears before the Finance and Expenditure Committee today at midday to discuss the RBNZ’s annual report. There will likely be some headlines, but we are not expecting anything ground-breaking."
With the Kiwi declining for three straight days, and no data on the docket for New Zealand until the Retail Sales figures on Thursday at 21:45 GMT, market sentiment will continue to control the direction of the pair going into the rest of the week.
NZD/USD Technicals
The pair has declined into the 8-day EMA, but long-term charts still show strong bullish pressure, with the pair still trading far above the 34 EMA and 200-day SMA. Current support can be found at yesterday's low of 0.7335, 0.7314, and 0.7277, with resistance at 0.7410 and 0.7436.
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