- NZD/USD fades the bounce from two-week lows, as USD bulls return.
- Post-Fed risk-on mood, recovery in the US yields drive the USD uptick.
- Focus shifts to the US NFP release for a decisive move in the kiwi.
NZD/USD is back in the red zone, heading towards the 0.7150 level in Thursday’s Asian trading.
The resurgent demand for the US dollar amid a rebound in the US Treasury yields is weighing on the kiwi’s recovery from two-week lows of 0.7092 reached on Tuesday.
The yields and the dollar are reversing the US Federal Reserve (Fed) inflicted losses, in the face of Chair Jerome Powell turning out dovish, citing patience on raising the interest rates until the central bank’s maximum employment goal is achieved.
The Fed announced tapering of its bond-buying programme by $15 billion per month while noting the rising price pressures are ‘expected to be transitory’.
The dovish stint by Powell and Co….