NZD/USD extends losses, drops to test 0.6000
- US dollar strengthens boosted by a recovery in US yields.
- Wall Street’s recovery from Thursday’s crash fades, still positive for the day.
The NZD/USD pair broke lower during the American session, ending hours of consolidation and tumbled to 0.6015, slightly above the intraday low it reached on Monday. The pair remains under pressure as the US dollar extends weekly gains.
The greenback started to rise on Friday as equity prices in Wall Street moved of highs, but it kept rising even as the correction ended. The ongoing rebound in US yields and risk aversion boosted the decline in NZD/USD. The 10-year rose to 0.97%, the highest level since March 5.
The DXY is at the highest since late-February at 98.60, posting the fourth daily gain in a row. From Monday’s low it rose 4.25%, making a dramatic reversal from the one-year low. Now it is again looking at the recent top.
Levels to watch
The pair dropped to levels near 0.6000, a relevant technical and psychological area and also the March low. A break lower could trigger an acceleration if NZD/USD holds under 0.6000. The next strong support is seen at 0.5920. On the upside, the immediate resistance is located at 0.6060 followed by 0.6085 (March 11 low) and 0.6160 (March 13 high).