NZD/USD Bears Remain Firm Amid High Oil Prices and Global Yields
The New Zealand Dollar (NZD) is trading higher against the US Dollar (USD) on Thursday, but its near-term bearish trend remains intact due to high oil prices and surging global yields. The NZD/USD pair is hovering around session highs above 0.5850, but remains within Wednesday's range with key support in the 0.5800 area eyed.
The current market sentiment is subdued, partly due to Brent Oil prices being a few cents below the $100 level after recent attacks on tankers between the US and Iran. This has added pressure on New Zealand's oil-importing economy, limiting Kiwi Dollar rallies.
Investors are also cautious about the US Treasury's bond buyback program, expected to start on Monday, which has eroded the traditional safe-haven status of the US Dollar. As a result, the NZD is not dropping further against the USD.
A bearish Head & Shoulders formation is in progress for the NZD/USD pair, with price action nearing the neckline between 0.5820 and 0.5800. Momentum indicators remain within bearish territory, with the Relative Strength Index (RSI) around 44 and the Moving Average Convergence Divergence (MACD) below zero.