NZD/USD rebounds from sub-0.71 for third straight day

The selling interest in the NZD/USD pair ran out of steam below 0.71 levels for the third straight session, although the technical recovery is struggling to gather traction.

US bond rally ebbing

The Kiwi is trading positive for the first time in the six days on signs the US bond rally running out of steam. At the time of writing, the 10-year and the 30-year yield was trading at least two basis points lower each. The 2-yr yield was down one basis point.

Prices increased 4.5% at yesterday’s Global Dairy Trade event, with all dairy products registering increases in average prices.

Despite the positives, the bird is struggling to scale new heights as the New Zealand earthquake is seen denting the economic confidence.

NZD/USD Technical Levels

The spot was last seen trading around 0.71 handle. A break above 0.7128 (5-DMA), could yield a test of 0.7176 (38.2% of May low – Sep high) levels. The next major hurdle is seen at 0.72 (zero figure). On the other hand, a breakdown of support at 0.7080 (50% of May low – Sep high) would open doors for a drop to 0.7034 (Oct 13 low) and 0.70 (zero figure).