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  • NZD/USD came under renewed selling pressure in American session.
  • US Dollar Index continues to push higher toward 93.00.
  • 10-year US Treasury bond yield looks to snap three-day losing streak.

After spending the first half of the day fluctuating in a relatively tight range below 0.7000, the NZD/USD pair came under bearish pressure during the American trading hours and fell to its lowest level since November at 0.6943. As of writing, the pair was down 0.16% on the day at 0.6950.

USD capitalizes on recovering bond yields, strong data

The USD’s market valuation continues to drive NZD/USD’s action. Earlier in the day, the upbeat data releases from the US provided a boost to the greenback.

The US Bureau of Economic Analysis revised its fourth-quarter GDP growth to 4.3% from 4.1% and the US Department of Labor reported  the weekly Initial Jobless Claims dropped to the lowest level since the beginning of the pandemic at 684,000.

Furthermore, the benchmark 10-year US Treasury bond yield, which closed the previous three days in the negative territory, is up nearly 1% on the day, further supporting the USD. Currently, the US Dollar Index is at its highest level in four months at 92.85, rising 0.35% on the day.

Meanwhile, several FOMC members downplayed inflation concerns. Chicago Fed President Charles Evans said that a 2.5% inflation in the near-term wouldn’t be extraordinary and Atlanta Fed President Raphael Bostic added that the coming jump in inflation will be big but not especially meaningful.

There won’t be any macroeconomic data releases from New Zealand on Friday.  

Technical levels to watch for