On Thursday, a hotter US inflation report spurred a jump in US Treasury yields, with the 10-year moving above the 2% threshold while US equities sold off. At the same time, the US Dollar pared some of its earlier losses, while the NZD/USD seesawed, closing 0.15% down in the day.
Friday’s story is slightly different. US Treasury yields, even though higher, ease a tone, with the 10-year down three basis points at 1.996%. Europan indices are mixed, while US equity futures are trending up. In the FX complex, the greenback is firm, with the DXY up 0.27%, at 95.76.President James Bullard crossed the wires on Thursday, following the release of US CPI. Bullard said that based on the US CPI figure, he favors a 1% rate increase “in the bag” by July 1. When asked about a 50 bps increase by the March meeting, he said, “I [he] just don’t want to prejudge that meeting.
, suggesting that selling pressure mounted around the 0.6700-30 area and will be challenging to overcome by NZD bulls.first support would be February 9 daily low at 0.6640. Breach of the latter would expose the February 4 swing low at 0.6588, followed by the January 28 low at 0.6529.