Yesterday's gains in the New Zealand dollar have been erased and more. NZD/USD is down 70 pips to 0.6737 as it tracks the overall risk mood and the USD trade.
The turn in markets today came as US Treasury yields jumped. They're up 13-10 bps across the curve in a flattener today. The 2-year has made a new cycle high at 2.70% and the dollar is most-sensitive to that end of the curve.
The NZD/USD chart looks very much like the Nasdaq. It rebounded in March but has sagged since. Yesterday gave the bulls some hope for another rebound but today's price action is a big disappointment. Now we watch 0.6717 (just 20 pips away) for a break of the recent lows. That level is also the 61.8% retracement level (a level the Nasdaq is also flirting with).
