- The NZD / USD gain rises for the second day in a row on Monday.
- Advance slowed below April highs and the dollar limits decline due to rise in Treasury bond yields.
The NZD / USD continued to climb, recently hitting 0.7226, the highest level in six days.. It then moved back slightly and is trading around 0.7215, in positive territory. The bullish tone remains firm but faces a major barrier at last week’s highs near 0.7225 / 0.7230.
In the last few hours, Treasury bond yields rose giving support to the US dollar to limit losses against currencies such as the NZD, AUD and CAD; at the same time they pushed it to new highs against the EUR, CHF and JPY. The 10-year rate was close to 1.60%.
Looking ahead to the next few hours, what happens to Wall Street and the bond market will continue to be key. With regard to data, the Durable Goods Order Report in the US | The key event of the week will be Wednesday with the Federal Reserve meeting.
Looking at the technical picture, the bullish bias remains firm, but to enable more raises the kiwi will have to break 0.7230. The outlook for further increases in the NZD / USD will remain strong as long as it is above 0.7200. A confirmation below 0.7150 would point to a correction ahead.
Technical levels
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