NZD/USD leads major currency gainers, up 0.21% to 0.7033, during the
early Fridays trading. Even if Good Friday restricts the market moves,
with holidays in Australia and New Zealand, the extended US dollar
weakness seems to play its role in favoring the kiwi buyers.To get more
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US dollar index (DXY) stays on the back foot below 93.00, near 92.90
by the press time, as the US 10-year Treasury yield remains pressured
close to 1.67%. Its worth mentioning that the key bond coupon dropped
the most in five weeks the previous day and favored USD bears.
While searching for catalysts, global ire over the conviction of
veteran Hong Kong Activists and the coronavirus (COVID-19) vaccine
chatters from the US should have played their role.
US Depart of Statement condemned the arrests of key democratic
personalities in Hong Kong while the Senate Majority Leader Mitch
McConnell pushed Biden Administration to gather international support to
take punitive actions against China due to the said instance.
Elsewhere, US health expert Dr. Anthony Fauci said that the US may not
need the AstraZeneca vaccine even if it gets regulatory approval for
usage. The news renewed vaccine jitters as the Anglo-Swedish vaccine is
among the top covid cure.
Its worth mentioning that the S&P 500 Futures print mild gains,
following the Wall Street benchmarks, whereas stocks in China and Japan
portray aftershocks of the US infrastructure spending announcement.
Although off in Australia and New Zealand challenges NZD/USD traders
the most, Chinas active day, amid tension surrounding Hong Kong, can
entertain the pair traders. However, nothing line the US employment
data, up for publishing at 12:30 GMT.
Read: US Nonfarm Payrolls March Preview: Optimism and evidence this time?
Technical analysis
A daily close beyond 0.7030, comprising late December lows, becomes
necessary for NZD/USD bulls to attack early March bottom surrounding the
0.7100 threshold.