NZD/USD declines under Dollar pressure


  • Kiwi slips as Dollar gains on bond yield spikes.
  • Dairy Auction results could impact Kiwi later day.

NZD/USD is down in Tokyo trading, testing yesterday's low of 0.7353 as of writing.

The pair is slipping as the US Dollar surges in the face of rising bond yields, with the 2-year Treasury note hitting its highest levels since 2008, and the other Treasuries up across the board as well.

Eyes will be focused on the GDT Dairy Auction today, though action may be limited as forecasts are already expecting a slight contraction; meanwhile, the Kiwi was unmoved following an upside beat to Produce Price Index as traders react to broader moves in the global equities markets. NZD will also see Retail Sales figures for the 4th quarter late on Thursday, at 21:45 GMT.

NZD/USD Technicals

The Kiwi is currently trading near a five-month high against the US Dollar, but a double-top may be forming in the charts following the recent rejection from the 0.7420 region. A continued decline from this area will see support come into play from 0.7315 and 0.7280, while a bullish return will have to contend with resistance priced in at 0.7403 and 0.7436.

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