- The NZD / USD rose to new highs in several weeks on Tuesday before reversing.
- The US Dollar Index remains relatively quiet around 91.00.
After closing the first day of the week in positive territory, NZD / USD retained its bullish momentum and touched its highest level in more than a month at 0.7230. However, a deterioration in investor sentiment and a recovery in the dollar, pushed it back to levels below 0.7200. The price fell to 0.7184, erasing almost all the gains for the day.
The dollar recovered strength in the last hours, reacting to the rebound in Treasury yields. The 10-year rate is 1,598%. The US Dollar Index (DXY) advanced from lows since early March and returned above 91.00.
A factor that favored the decline of the NZD / USD was the weakness seen in equity markets. On Wall Street, futures points to a negative opening with falls around 0.45%. With no data ahead of the US on Tuesday, the focus will remain on Wall Street and the bond market. On Wednesday in New Zealand it will be the turn of the inflation figures for the first quarter.
Technical levels
On the downside, support that follows in NZD / USD can be seen at 0.7180 (last week’s highs) followed by 0.7130. In the opposite direction, a confirmation above 0.7220 would give the kiwi strength to extend the advance to new highs in weeks. Above 0.7240, the next resistance is seen at 0.7270.
Additional levels
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