NZD/USD hits fresh two-week low of 0.7246

• NZD continues to slide as yield differential widens in the USD-positive manner.
• Kiwi looks set to test the ascending 100-day moving average lined up at 0.7214. 

The NZD/USD pair is extending the three-day losing streak, now trading at 0.7248 - its lowest level since April 6. 

The American dollar picked up a bid yesterday as the two-year Treasury yield hit fresh 9-year high and the 10-year yield moved above 3 percent. Consequently, the 10Y NZ-US yield spread has hit fresh lifetime lows below zero. The negative spread means the NZ bonds yield less than their US counterpart. The Kiwi may remain on the back foot in the near-term as the yield advantage has been eroded. 

No first tier US economic reports are scheduled for release today, hence the spot is at the mercy of the action in the treasury yields and the yield differential. 

NZD/USD Technical Levels

A break below 0.7214 (100-day MA) would expose the support lined up at 0.7186 (38.2 percent Fibonacci retracement of Nov-Feb rally) and 0.7153 (March 21 low). On the higher side, a move above 0.7271 (session high) could yield a corrective rally to 0.7307 (descending 5-day MA) and 0.7329 (10-day MA).