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The kiwi is leading gains in the major currencies space after the more hawkish RBNZ tilt earlier today, as the central bank put a halt to QE purchases and setting for a potential rate hike going into the August meeting.

A couple of key kiwi levels to watch in NZD/USD and AUD/NZD in the aftermath.

Looking ahead, the loonie will also be a main focus as the BOC policy decision is due later in North American trading. USD/CAD is holding little changed close to 1.2500.

Treasury yields are still keeping a decent rebound off last week's lows, with 10-year yields up to 1.40% and that is helping the USD/JPY rebound this week.

Fed chair Powell will also be on the agenda later today but I don't think he will reveal any major shifts in the narrative for now, so bond yields may not see much of a strong reaction as yesterday later.

That said, the technical bounce near the 200-day moving average for 10-year yields is encouraging and that could extend further after witnessing the short squeeze play out in the past two weeks or so.

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