- The Kiwi is falling against the US Dollar as Treasury yields drive the Greenback higher.
- New Zealand markets are shuttered today for the Anzac holiday, and market volumes are thin.
The Kiwi is drifting lower in the early Asia session, hitting into fresh lows at the 0.7100 handle as the US Dollar continues to walk up the charts.
The NZD/USD has been declining steadily as the US Dollar stages a recovery in the broader markets, and the major correction is getting fueled once more by rising US Treasury yields, with the 10-year note hitting the 3% key level in the overnight session, and the Kiwi is falling back along with other risk assets against the USD.
Forex today: risk turns sour, dollar pressured, yields met the 3.00% mark
The New Zealand markets are dark today as the Antipodeans observe the Anzac Remembrance Day, and volumes are thin in the Asia session. Adding to Wednesday's pile is the People's Bank of China (PBOC), which cut their Reserve Requirements Ratio for a second time in two weeks as the PBOC tries to free up extra liquidity in the face of a possible economic slowdown.
PBOC cuts reserve requirement ratio
NZD/USD Levels to watch
The pair is turning deeply bearish, trading into four-month lows, and as FXStreet's own Ross Burland noted earlier, "technicals lean bearish after a new low was set with the RSIs biased down and with an inverted hammer on the monthly sticks. The bears can target a break of 0.7105 down to 0.7070 before 0.7030. To the upside, the 100-D SMA is located at 0.7220."
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