NZD Slides Near Multi-Year Lows as US Yields Remain Firm
The New Zealand dollar (NZD) remained relatively unchanged on Friday, hovering around 0.5665 against the US dollar (USD). Despite a modest easing in the USD index, which was down 0.22% at about 101.00, the NZD failed to gain traction.
The US Treasury yields stayed firm, with the 10-year near 5.19%, slightly below its prior session's peak of 5.22%. The final University of Michigan Consumer Sentiment Index for September printed at 48.1, above the 47.6 preliminary reading and the 47.8 consensus.
The inflation expectations in the US also ran hot, with the one-year measure at 4.6% versus 4% previously, while the five-year gauge held at 3.4% compared to 3.3%. With these factors contributing to a strong USD, analysts expect continued downward pressure on the NZD/USD pair.