NZD/USD consolidates daily gains around 0.7230 as USD struggles to find demand

• NZD/USD is rising for the third straight day on Wednesday.
• Greenback struggles to find demand as US T-bond yields drop.
• Eyes on mid-tier macroeconomic data releases from the US.

The NZD/USD pair posted daily gains on Wednesday supported by the broad-based USD strength and continued to push higher on Wednesday. After touching a weekly high of 0.7241, however, the pair seems to have gone into a consolidation phase and was last seen gaining 0.48% at 0.7229.

DXY remains on the back foot

Following the 10-year US Treasury note auction on Wednesday, the US T-bond yields fell sharply and forced the USD to start weakening against its rivals. At the moment, the US Dollar Index (DXY) is losing 0.3% at 91.55 and the yield on the benchmark 10-year T-bond yield is losing 1.7%.

Additionally, the upbeat market mood is not allowing the USD to find demand as a safe-haven and allows NZD/USD to remain in the positive territory. Currently, the S&P 500 Futures are up nearly 0.8%.

Later in the session, the US Department of Labor will release its weekly Initial Jobless Claims data. Moreover, the US Bureau of Labor Statistics’ JOLTS Job Openings report will be looked upon for fresh impetus.

In the early trading hours of the Asian session on Friday, the Business NZ PMI data from New Zealand for February will be watched closely by market participants. A reading above 50 could help the kiwi preserve its strength with the market consensus pointing to a decline to 49.8 from 57.5 in January.

Technical levels to watch for