- NZD / USD hits fresh eight-month lows below 0.6900.
- The USD strengthens amid mixed markets.
- The fall in the price of oil and fears for the Delta variant of the covid weigh heavily on the NZD.
Despite the fact that risk aversion monetary flows have decreased slightly so far this Tuesday, the NZD / USD continues to feel the pull of gravity and falls below 0.6900, reaching the lowest levels since November last year.
The NZD remains weakest among G10 currencies, while a new buying momentum around the US dollar appears to have contributed to the latest decline in the NZ / USD pair.
At the time of writing, the pair has recovered slightly above 0.6900 after hitting fresh eight-month lows. The pair retreats sharply from daily highs of 0.6965.
Meanwhile, a recovery in risk sentiment is helping US Treasury yields rally, lending support to USD bulls.
Monday’s selloff in oil prices combined with the RBA’s fading optimistic expectations could also be weighing on the NZD. With the extension of the Victoria lockdown and pessimistic minutes from the RBA, economists have delayed expectations of a tightening of the RBA’s monetary policy.
Looking ahead, the NZD / USD will follow the price action of the US dollar and broader market sentiment. Also noteworthy are the housing data in the United States and the GDT price index for New Zealand.