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NZD/USD rebounds toward 0.5610 as Fed and US yields support USD
FXStreet said the 10-year US Treasury yield rose to 5.34% before retreating to 5.25% ahead of the September jobs report.
The New Zealand dollar rebounded against the US dollar, with NZD/USD recovering some ground to around 0.5610 and snapping a three-day losing streak in early European trade, according to FXStreet.
FXStreet attributed the move to continuing support for the US dollar, citing higher US Treasury yields and a hawkish Federal Reserve stance. The outlet noted that a spike in oil linked to US-Iran tensions has also raised inflation concerns, keeping bond yields elevated.
FXStreet added that the 10-year US Treasury yield hit 5.34% in the prior session before easing to 5.25%. It also cited Dallas Fed President Lorie Logan’s view that the Fed would need to raise short-term borrowing costs by at least 50 basis points to shift policy toward “modestly restrictive” settings to bring inflation back to target.
Looking ahead, FXStreet said Friday’s September US jobs report is the key event, with forecasts calling for Nonfarm Payrolls to rise by 90,000 after a 162,000 increase in August, while the unemployment rate is expected to hold at 4.1%.