NZD Extends Losses as US Treasury Yields Rise
The New Zealand Dollar (NZD) has extended its losses against the US Dollar (USD), dropping by 0.30% as the Greenback gains strength due to rising US Treasury yields. The NZD/USD exchange rate currently trades at 0.5835.
From a technical standpoint, the price action shows that the pair is poised to consolidate within familiar levels, oscillating around the confluence of the 50-, 100- and 200-day Simple Moving Averages (SMAs) at around 0.5848, 0.5843, and 0.5854 respectively.
However, from a momentum perspective, further downside is seen as the Relative Strength Index (RSI) has turned bearish.
On the downside, the NZD/USD's first line of defense is a support trendline passing through around 0.5810-0.5820, followed by the 0.5800 figure as the next support level. A breach of the latter could extend losses towards the July 29 swing low of 0.5761 and potentially even to the 0.5700 mark.