- NZD/USD met with some aggressive supply amid a broad-based USD strength.
- A solid rebound in the US bond yields helped revive the USD demand on Tuesday.
- Technical selling below the 0.60 mark further aggravated the bearish pressure.
The NZD/USD pair extended its sharp intraday rejection slide from the 0.6100 neighbourhood and nosedived to near a decade low, below mid-0.5900s in the last hour.
The pair failed to capitalize on its early uptick to an intraday high level of 0.6096, rather came under some intense selling pressure and was being weighed down by some aggressive US dollar buying interest on Tuesday.
As investors digested the Fed’s emergency decision to slash interest rates to zero and introduce a massive bond-buying program, the greenback regained some strong traction amid a goodish rebound in the US Treasury bond yields.
Meanwhile, a modest recovery in the global risk sentiment, which tends to drive flows towards perceived riskier currencies, including the kiwi, did little to impress bulls or stall the pair’s sharp intraday slide of over 150 pips.
This coupled with possibilities of some short-term trading stops being triggered below the 0.6000 round-figure mark and a subsequent break through the overnight swing lows, around the 0.5980 region aggravated the bearish pressure.
Technical levels to watch