NZD/USD refreshes weekly top above 0.7000 despite sluggish markets
- NZD/USD stays firm around eight-day top, prints three-day winning streak.
- Downbeat US Treasury yields keep greenback pressured.
- Challenges to risk gain less attention amid Good Friday holiday.
- US Employment data, bond moves become the key.
NZD/USD leads major currency gainers, up 0.21% to 0.7033, during the early Friday’s trading. Even if Good Friday restricts the market moves, with holidays in Australia and New Zealand, the extended US dollar weakness seems to play its role in favoring the kiwi buyers.
US dollar index (DXY) stays on the back foot below 93.00, near 92.90 by the press time, as the US 10-year Treasury yield remains pressured close to 1.67%. It’s worth mentioning that the key bond coupon dropped the most in five weeks the previous day and favored USD bears.
While searching for catalysts, global ire over the conviction of veteran Hong Kong Activists and the coronavirus (COVID-19) vaccine chatters from the US should have played their role.
US Depart of Statement condemned the arrests of key democratic personalities in Hong Kong while the Senate Majority Leader Mitch McConnell pushed Biden Administration to gather international support to take punitive actions against China due to the said instance.
Elsewhere, US health expert Dr. Anthony Fauci said that the US may not need the AstraZeneca vaccine even if it gets regulatory approval for usage. The news renewed vaccine jitters as the Anglo-Swedish vaccine is among the top covid cure.
It’s worth mentioning that the S&P 500 Futures print mild gains, following the Wall Street benchmarks, whereas stocks in China and Japan portray aftershocks of the US infrastructure spending announcement.
Although off in Australia and New Zealand challenges NZD/USD traders the most, China’s active day, amid tension surrounding Hong Kong, can entertain the pair traders. However, nothing line the US employment data, up for publishing at 12:30 GMT.
Read: US Nonfarm Payrolls March Preview: Optimism and evidence this time?
Technical analysis
A daily close beyond 0.7030, comprising late December lows, becomes necessary for NZD/USD bulls to attack early March bottom surrounding the 0.7100 threshold.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
