- NZD/USD remains under strong bearish pressure on Monday.
- US Dollar Index extends rally at the start of the week.
- 10-year US Treasury bond yield continues to edge higher.
The NZD/USD pair posted weekly losses for the second straight time last week and extended its slide on Monday with the greenback preserving its strength. As of writing, the pair was down 0.72% on a daily basis at 0.7107.
Broad USD strength remains main market theme
Rising US Treasury bond yields continue to provide a boost to the USD at the start of the week. The benchmark 10-year US T-bond yield is up more than 2% on the day and the US Dollar Index (DXY) is trading at its highest level since November at 92.32, up 0.38%.
Earlier in the day, the data from China showed that the trade surplus in February came in higher than expected with exports rising by 60.6% on a yearly basis. However, this upbeat report failed to help the NZD find demand.
There won't be any significant macroeconomic data releases from the US in the remainder of the day and the USD's market valuation is likely to continue to dominate NZD/USD's movements. In the early trading hours of the Asian session on Tuesday, fourth-quarter Manufacturing Sales from New Zealand will be looked upon for fresh impetus.
Meanwhile, the S&P 500 Futures are down 0.4% on Monday, suggesting that NZD/USD could struggle to stage a rebound in the second half of the day if safe-haven flows dominate the financial markets.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.