- The NZD / USD witnessed an intraday trend reversal from the week-long highs amid a sustained buy in the USD.
- The optimistic US economic outlook, rising US bond yields, and softer risk tone benefited the USD.
The pair NZD / USD it remained depressed throughout the early American session and was last seen hovering near the lower end of its daily trading range, around the 0.6980-75 region.
The pair struggled to capitalize on the initial rally to the 0.7030-35 area, or one-week highs, instead meeting fresh offers and, for now, it appears to have stalled its recent rebound from multi-month lows. The US dollar soared to fresh four-month highs on Tuesday, which, in turn, was seen as a key factor putting pressure on the NZD / USD pair.
The USD remained well supported by the prospects for a relatively stronger US economic recovery from the pandemic and received an additional boost from a strong rally in US Treasury yields. The 10-year benchmark US government rose again above 1.75% or the highest level since January 2020.
On the economic data front, the Conference Board Consumer Confidence Index jumped to 109.7 in March from the prior month’s revised downward reading of 90.4. The reading beat even the most optimistic estimates and continued to support the strong supply tone surrounding the USD, although it did little to provide further momentum.
With Tuesday’s US economic data out of the way, US bond yields will continue to play a key role in influencing USD price dynamics. This, coupled with the broader market risk sentiment, will provide some boost to the NZD / USD pair and allow traders to seize some short-term opportunities.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
