- NZD/USD bulls testing the bearish commitments on a strong US dollar story.
- The focus is on the US NFP at the end of the week and rising US yields.
At the time of writing as the Wall Street closing bell rings, NZD/USD is ending the session down some 0.2% on the day at 0.6984.
The kiwi ranged between 0.6972 and 0.7033 while testing below the 0.70 level as the greenback and US yields took up the driving seat once again.
There was little in the way of data to drive the markets but prospects of a solid Nonfarm Payrolls report accompanied by a jump in US consumer confidence benefitted the reflation playbook and bullish USD thesis.
”This vibe has certainly taken a bit of shine off the NZD story, but as we noted yesterday, the better performance of US equities over March speaks to month-end rebalancing flows back into NZD, which could create some noise near-term,” analysts at ANZ Bank argued.
”We also have US ISM data tomorrow night, then non-farm payrolls data on Friday night (NZ time) and expectations have been ramped up a touch to +650k.”
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