NZD Recovers as Oil Prices Ease Amid Diplomatic Efforts

The New Zealand dollar has recovered from its fresh lows yesterday afternoon, trading around 0.5725 against the USD. The NZD/USD exchange rate had dropped to about 0.5695 in a liquidity vacuum before rebounding with some support from an RBNZ press release.

Oil prices are slightly lower amid positive vibes around the Middle East conflict. Brent crude fluctuated between USD97.50 and USD102 per barrel overnight and currently trades with a USD98 handle, down modestly. Saudi Arabia is preparing to restart its key East-West pipeline and resume crude exports from its Red Sea port by the end of the week.

The US 10-year Treasury yields are currently flat around 4.96%, after trading an overnight range of 4.92%-4.98%. The 2-year rate traded at a fresh two-year high of 4.785%.