NZD/USD: Kiwi falls to December lows as the US Treasuries selloff hikes yields

  • The US Treasuries sold off with yields rising to the highest level since summer of 2011.
  • The NZD/USD falls to the lowest level since December 11 last year.

The NZ Dollar lost the ground against the US giant counterpart on Tuesday after the selloff on the US Treasuries saw the benchmark 10-year Treasury yields rising to 3.089%, the highest level since summer of 2011.

The NZ Dollar was trading down 0.50% at around 0.6860 against the US Dollar just before midnight GMT after opening the session at around 0.6900 and rising to the intraday high of 0.6920 earlier on Tuesday.

With the Treasuries having the main effect on the US Dollar that rose across the board with the rising yields, scheduled macro news had marginal influence on the FX market.

The US economy saw the Empire State manufacturing survey in New York jumping up to 20.1 in May, beating the market expectations, while the US retail sales rose 0.3% m/m in April. The macro data were published just before the US Treasuries selloff with yields rising in massive support the greenback.

Current San Francisco Federal Reserve President and the upcoming New York Fed President John Williams was crossing the wires saying the US economy is seen rising 4.1% in the second quarter of this year while it is too soon to declare “mission accomplished” on inflation until it reaches 2% inflation target. 

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