NZD/USD making tracks on 0.70 handle back of weaker greenback

Currently, NZD/USD is trading at 0.7024, up 0.03% on the day, having posted a daily high at 0.7032 and low at 0.7020.

NZD/USD has rallied again overnight on the coattails of US yields dropping as markets discount the prospects for the Fed being able to hike rate three times this year and fulfill their commitments to the dot plot.

Interest rates: 

"US 10yr treasury yields fell from 2.45% to 2.34% - a one-month low – while 2yr yields fell from 1.22% to 1.16%. Fed funds futures continued to price in a 100% chance of a hike by June but another not until December," noted analysts at Westpac

The US data was mixed and the ADP report was, and if this is a prelude to the nonfarm payrolls at the end of the week then that is a catalyst for a sell-off in the dollar given how the Fed minutes failed to renew bids on the greenback. Meanwhile, there is little go on for the NZ economy although this week's GTD price index was a miss and bearish for the kiwi.

DXY dropping in wake of skepticism for Fed dot plot, eyes on 99.85

NZD/USD levels

With spot trading at 0.7024, we can see next resistance ahead at 0.7032 (Daily High), 0.7038 (Yesterday's High), 0.7041 (Weekly Classic R2), 0.7069 (Daily Classic R3) and 0.7080 (Daily 200 SMA). Support below can be found at 0.7022 (Daily Open), 0.7022 (Weekly High), 0.7020 (Daily Low), 0.7018 (Daily Classic R2) and 0.6999 (Hourly 20 EMA).