NZD/USD: Price action looks weak – ANZ

FXStreet Insights Team FXStreet

NZD/USD has struggled this week. Economists at ANZ Bank analyze Kiwi’s outlook.

Big gap between DXY and bond yields

USD strength has returned amid rising US bond yields, and NZ interest rate spreads to other geographies have narrowed following last week’s MPR and Q3 CPI data this week.

NZD price action looks weak, with lower lows and lower highs seen including a break below the September low.

Looking ahead, the biggest risk seems to be a continuation of the ‘USD exceptionalism’ theme, noting that a noticeable gap (that could close) has opened up between the US Dollar Index (DXY) and bond yields.

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