NZD/USD trades lower due to the recovery in the US Dollar. The Mid-East tension could drive the capital flows into the safe haven assets. Market sentiment toward the Fed’s prolonging interest rates higher is bolstering the Greenback. wnward pressure as the US Dollar rebounds on risk-off mood. The Reserve Bank of New Zealand decided to keep the Official Cash Rate unchanged at 5.5% in a monetary policy meeting on Wednesday, aligning with widespread expectations.
The US Dollar Index has rebounded after three consecutive days of losses, propelled by optimistic US Treasury yields. The DXY trades around 106.50 at the time of writing. US Treasury yields have rebounded, influenced by expectations that the Federal Reserve will maintain higher interest rates for an extended period. The 10-year US Treasury bond yield has once again reached 4.80%, near its peak since 2007. Investors are likely to watch the upcoming FOMC meeting minutes scheduled for Wednesday.