NZD/USD is on the backfoot following a surge in US yields

• NZD/USD bulls licking their wounds into the final day of the week.
• NFP on the cards as a fatal  blow or a lifeline following Fed’s Powell.

NZD/USD is trading at 0.7192 and down on the day by some 0.7% following  the market rout on the back of Federal Reserve’s chair, Jerome Powell, who stuck to the script encouraging a spike in US yields.  

The commodity complex was stead  ahead of Fed Chairman Powell’s speech and the February nonfarm payroll report on Friday whether expectations have been tempered by recent data.

Powell explained that for the foreseeable future, the Fed is going to deliberately sit behind the curve and  in reference to recent fixed income moves, he did note that the Fed would be concerned if financial conditions tightened notably.

However, there are no indications that the Fed was alarmed by the market volatility but he hinted that the Fed could take action if needed.

Meanwhile, in recent trade, New Zealand has issued a  tsunami warning for some north island coastal areas.