- The US dollar is still the main driver behind NZD/USD weakness.
- Earlier in the American session, the US Philadelphia Fed index in May rose to 34.4 vs 21 forecast while the job data came in mixed.
- The New Zealand budget release fails to give any long-term boost to kiwi.
The NZD/USD is trading at around 0.6879 on Thursday as the US forex session came to a close.
Back in Asia on Thursday, the kiwi had a 30-pip boost on the back of optimistic New Zealand’s budget release and almost reached the 0.6940 level. After which bears took the lead throughout the European and American session and established a low of the day at 0.6872.
The US dollar was once again the main culprit for the weakness in the NZD/USD. The US Dollar Index, which measures the buck against a basket of currencies gained about 0.20% on Thursday and is currently trading at around 93.48. Investors continued to dump US bonds as the 10-year Treasury yield benchmark broke yet again to a new multi-year high at 3.122% on Thursday’s trading.
On the macroeconomic front in the US, the US Philadelphia Fed index in May rose to 34.4 versus 21.0 forecast while the job data came in mixed.
NZD/USD 4-hour chart
The main trend is bearish and supports are seen at the 0.6851 level followed by the 0.6800 figure while resistance is seen at the 0.6900 figure and at the 0.6938 swing high. The kiwi is trading below its 50, 100 and 200-period simple moving averages on the 4-hour chart which suggests a strong downward bias.