The NZDUSD is under pressure today, leading the majors to the downside against the USD.
The NZDUSD is under pressure today, leading the majors to the downside against the USD. The pair is currently trading at 0.5834, down -0.87%, as a combination of risk-off sentiment and rising U.S. yields weighs on the currency.
The broader market backdrop is not helping. The NASDAQ Composite has slipped into negative territory (down around -0.34%) ahead of a heavy slate of earnings after the close from Microsoft, Alphabet, Meta Platforms, and Amazon. At the same time, yields are pushing higher into the FOMC rate decision, with the 2-year up 7 basis points to 3.914% and the 10-year climbing 4.6 basis points toward 4.40%.
Oil prices are also not helping with a rise of 6.68% on fears of a more prolonged blockade of the Strait of Hormuz. That combination is keeping the USD bid and the NZD on the defensive. From a technical perspective, the pair traded down to 0.5827, coming within a couple of pips of the 200-bar moving average on the 4-hour chart.