Home›Forex›Major Pairs›NZD/USD turns negative as Middle East tensions lift oi…

NZD/USD turns negative as Middle East tensions lift oil and yields

NZD/USD was last at 0.5596, as crude near $102.0 a barrel pushed Treasury yields higher and strengthened the US dollar.

Reported · Written up by our desk · Major Pairs

The New Zealand dollar pulled back against the US dollar, with FXStreet noting the NZD/USD pair turned negative on the day’s early European trading as market sentiment deteriorated.

FXStreet attributed the shift in part to higher oil prices tied to escalating Middle East tensions, including reports of new attacks on Saudi Arabian airports by Houthis from Yemen. Brent crude was described as trading near $102.0 a barrel, which raised concerns about potential supply constraints if Saudi oil sites are damaged.

The oil-driven move also pushed Treasury yields higher, FXStreet said, with markets pricing in tighter monetary policy due to elevated energy costs. The outlet added that a mild USD weakness after the release of the September Federal Reserve meeting minutes did not change expectations that the Fed would keep rates on hold in October.

In FXStreet’s technical view, NZD/USD was trading around 0.5596, with bearish momentum building and the 0.5580 support area in focus. The article said indicators on the four-hour chart support the negative bias, including a noted role for the Relative Strength Index.

Latest closeWTI crude $89.70 ▼1.6%|Brent $100.73 ▼1.5%

More like this

Sources