- The dollar rises across the board on risk aversion.
- DXY hits highest level since October 2002.
- NZD/USD fails to recapture 0.6200 and breaks support at 0.6130.
The NZD/USD is falling on Monday and hit a fresh two-year low at 0.6096, before paring losses to 0.6130. The pair is under pressure amid risk aversion that continues to boost the US dollar.
The USD, as measured by DXY, hit a fresh 19-year high above 108.00. The move took place even as US yields fall. The US 10-year yield stands at 2.98%, down more than 3%, while the 30-year yield stands at 3.16%. On Wall Street, the Dow Jones falls 0.32% and the Nasdaq 1.85%.
Concerns about the economic outlook continue to weigh on market sentiment. New COVID-19 restrictions in China raised fears about global growth.
Turning to economic data, the focus is on the US CPI for June, due for release on Wednesday. On the same day, the Reserve Bank of New Zealand will announce its decision on monetary policy. A rate hike of 50 basis points is expected to curb inflation.
breaking the support
NZD/USD fell below the strong support area of 0.6130. If the pair consolidates below, further losses seem likely. A recovery above could relieve pressure, favoring a return to the 0.6200/0.6130 range.
Technical levels
Source: Fx Street
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