- NZD/USD remains under strong bearish pressure on Monday.
- US Dollar Index extends rally at the start of the week.
- 10-year US Treasury bond yield continues to edge higher.
The NZD/USD pair posted weekly losses for the second straight time last week and extended its slide on Monday with the greenback preserving its strength. As of writing, the pair was down 0.72% on a daily basis at 0.7107.
Broad USD strength remains main market theme
Rising US Treasury bond yields continue to provide a boost to the USD at the start of the week. The benchmark 10-year US T-bond yield is up more than 2% on the day and the US Dollar Index (DXY) is trading at its highest level since November at 92.32, up 0.38%.
Earlier in the day, the data from China showed that the trade surplus in February came in higher than expected with exports rising by 60.6% on a yearly basis. However, this upbeat report failed to help the NZD find demand.
There won’t be any significant macroeconomic data releases from the US in the remainder of the day and the USD’s market valuation is likely to continue to dominate NZD/USD’s movements. In the early trading hours of the Asian session on Tuesday, fourth-quarter Manufacturing Sales from New Zealand will be looked upon for fresh impetus.
Meanwhile, the S&P 500 Futures are down 0.4% on Monday, suggesting that NZD/USD could struggle to stage a rebound in the second half of the day if safe-haven flows dominate the financial markets.
Technical levels to watch for
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