NZD/USD inches lower toward 0.66 on USD recovery
Our preference: the downside prevails as long as 0.6638 is resistance.
Alternative scenario: above 0.6638, look for 0.6659 and 0.6671
Sharp rebound in 10-year US T-bond yield helps USD recover last week’s losses.
Stronger greenback weighs on the pair.
Coming up: JOLTS job openings from US and manufacturing sales from NZ.
After adding more than 100 pips last week, the NZD/USD reversed its direction on Monday pressured by the broad USD strength.
As of writing, the pair was trading at 0.6615, losing 0.75% on a daily basis.
The decisive upsurge witnessed in the 10-year Treasury bond yields on the back of Trump administration reaching a
deal with Mexico and suspending tariffs helped the greenback start the new week on a firm footing. The US Dollar Index,
which tracks the dollar’s value against a basket of six major currencies, recovered from the multi-month low that it set last Friday at
96.46 and was last seen adding 0.36% at 96.91 while the 10-year T-bond yield was up 2.75%.