- The NZD / USD remains under heavy bearish pressure on Monday.
- The US dollar index extends the rally to the beginning of the week.
- The yield on 10-year US Treasuries continues to climb.
The pair NZD / USD it posted weekly losses for the second time in a row last week and extended its slide on Monday with the dollar retaining its strength. At time of writing, the pair was down 0.72% on the day at 0.7107.
The broad strength of the USD remains the main theme of the market
Rising US Treasury yields continue to provide a boost to the USD at the start of the week. The benchmark 10-year US Treasury yield is up more than 2% on the day and the US Dollar Index (DXY) is trading at its highest since November at 92.32, up 0.38%. .
Earlier in the day, data from China showed that the trade surplus in February was higher than expected, with exports rising 60.6% annually. However, this upbeat report did not help the NZD find demand.
No major US macro data will be released for the remainder of the day and the USD market valuation is likely to continue to dominate the NZD / USD movements. In the early trading hours of the Asian session on Tuesday, New Zealand’s fourth-quarter manufacturing sales will be seen for further momentum.
Meanwhile, S&P 500 futures were down 0.4% on Monday, suggesting that the NZD / USD could struggle to make a rally in the second half of the day if safe-haven flows dominate financial markets.
Technical levels
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