The New Zealand Dollar rises above 0.5930 as US Treasury doubles buybacks, pulling 10-year yields down from recent highs.
The New Zealand Dollar (NZD) climbed against the US Dollar (USD), trading above 0.5930, driven by a weaker Greenback. The US Treasury announced plans to double its buyback operations for longer-dated coupon securities, increasing each operation from $2 billion to at least $4 billion between September 9 and November 4. The move aims to improve liquidity and curb rising long-term yields, which had traded above 4.70% earlier in the day before retreating toward 4.65%.
The July Federal Open Market Committee (FOMC) minutes, released Wednesday, showed policymakers still view inflation as elevated, with three officials voting for a rate hike. However, traders dismissed the minutes as outdated, given softer inflation and weaker jobs data since the meeting. A September rate hold remains the base case, keeping pressure on the Dollar.
Market focus now shifts to New Zealand’s July trade balance, though the primary driver for NZD/USD remains US yields and Dollar trends. The pair holds above its 20-period Simple Moving Average on the 4-hour chart, maintaining a near-term bullish bias.