- The risk-sensitive NZD is advancing in a mixed market environment.
- US Treasury yields are on the rise, though they hesitate to drag the dollar down, which is heading below 96.00.
- NZD / USD has a bearish bias and could accelerate the downtrend once the 0.6800 level is broken.
The NZD it is moving higher, recovering from losses in the early Asian session as the American session progresses, trading at 0.6827 at the time of writing. Investor sentiment is optimistic as US equities regain some ground, with the exception of the Nasdaq Composite, which is down 0.02%.
US Treasury Yields Rise But Stumble to Lift the Dollar
In the forex market, risk-sensitive currencies like the NZD and AUD are on the rise, courtesy of a softer USD trading session, with the US Dollar index falling 0.27%, down from 96.00 for the first time in the week. Meanwhile, US Treasury yields jumped sharply during the American session, with the 10-year Treasury yield climbing as much as six basis points to 1,541%, hesitating to boost the dollar. .
Meanwhile, the US economic record presented the Trade Balance of Goods for November, which showed a deficit greater than expected, reaching 97.78 billion more than the estimated 89.00 billion. In addition, Pending Home Sales for the same period, on a monthly basis, contracted 2.2%, worse than the expected increase of 0.5%, showing the first signs of increasing inflationary pressures on consumers.
NZD / USD Price Forecast: Technical Outlook
The daily chart of the NZD / USD shows that the pair has a downward bias, as the daily moving averages (DMA) are well above the spot price with a bearish slope with the shortest time periods, below of the longest. Technical indicators like the Relative Strength Index (RSI) at 49 are pointing down, suggesting that the pair could have another leg down.
The first line of defense for the NZD bulls could be 0.6800. A break below the latter would expose the December 27-28 daily low at 0.6788 and then major support at the December 20 cycle low at 0.6702.
Technical levels
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