Analysis Market overview

NZDUSD overview 17.03.2021

NZDUSD falls as U.S. Treasury yields hit new highs.

NZDUSD under the bearish pressure today as the investors are continuing to move out of the New Zealand dollars and into the USA dollars after U.S. 10-year Treasury yields rose to their highest levels since early 2020 at 1.67%, – ahead of the Fed statement at 1800 GMT later today. The economists expect the Fed to forecast the U.S. economy will grow in 2021 at the fastest rate in decades, with unemployment falling and inflation rising, as the COVID-19 vaccination programme accelerates and a $1.9 trillion relief package arrives to the households throughout the country – which coupled with the loosening of the lockdown restrictions has the strength to greatly strengthen the inflationary pressures in USA – which would be strongly bearish for NZDUSD.

Expect sellers on upward corrections.

Next support to watch – 0.7100

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