The post NZD/USD retreats amid high US Treasury yields, despite weakening US Dollar appeared on BitcoinEthereumNews.com.

NZD/USD’s decline influenced by rising US Treasury yields, overshadowing DXY’s 0.12% drop in the face of robust US job data. US labor market strength impacts currency pair, with swaps market revising Fed rate cut forecasts to 140 basis points by end-2024. Focus shifts to upcoming US Nonfarm Payrolls and Unemployment Rate, as the New Zealand economic calendar remains quiet. The New Zealand Dollar (NZD) is on the defensive against the US Dollar (USD) in the mid-North American session on Thursday, even though the Greenback is under downward pressure following the release of upbeat economic data from the United States. Therefore, the NZD/USD exchanges hands at 0.6225, down by 0.29% after hitting a daily high of 0.6285. NZD/USD remains pressured as a reaction to US economic data and traders trimming Fed rate cut expectations The advance in US Treasury bond yields is the main reason for the NZD/USD’s drop for the fifth consecutive day. Nevertheless, it failed to underpin the buck, which, according to the US Dollar Index (DXY), weakens by 0.12% and sits at 102.33 against a basket of six currencies. In the meantime, data revealed earlier today showed the US jobs market remains robust, even though the JOLTs report suggested vacancies are dropping. Unemployment claims announced by the US Bureau of Labor Statistics (BLS) rose by 202K, less than estimates of 216K and the prior’s number of 220K. Earlier, the ADP Employment Change for December announced that private companies hired more people than expected, with figures climbing 164K vs. 115K foreseen. Following the release of the data, the swaps market adjusted its expectations to a less accommodative Federal Reserve stance. Traders are forecasting 140 basis points in rate reductions by the end of 2024. This is a decrease of 30 basis points from the 170 basis points in cuts…

---

Filed under: News - @ January 4, 2024 8:24 pm