NZD/USD sinking to fresh lows on Monday, 0.6300 eyed

• NZD/USD pressured to test 0.6320 support as US dollar firms. 
• US stocks close in a sea of red on global growth fears. 

NZD/USD is ending on Wall Street in the red, a touch below flat but making a fresh low for the day following a fresh surge in the greenback. The bird is on the verge of a break of 0.6320 support at the time of writing to open the way for a run to test 0.63 the figure.

Bears have moved in as US yields attempt to establish a floor following a slide at the start of New York's day. However, equities did not perform well with the S&P 500 ending below 4,000 for the first time since March 2021 and the Nasdaq dropped more than 4% in a selloff led by mega-cap growth shares as investors grew more concerned about rising interest rates.

''Weaker growth and high inflation remain the primary concerns and their impact has been bluntly but savagely felt across asset markets and commodities, with oil prices sinking despite Russia not backing down on its invasion of Ukraine thanks to softening resolve on sanctions by the European Union, and Saudi Arabia cutting prices,'' analysts at ANZ Bank explained. 

''So it’s all still very global and local factors are only playing a role at the fringes. As time goes on, market fears of a deeper correction lower continue to percolate; that’s weighing on sentiment. A move to 0.6230 (61.8% Fibo of the 2020/21 0.5470/0.7465 rally) would be a disaster.''

Meanwhile, an ear is being kept to the ground for Federal Reserve speakers as well. On Monday, Minneapolis Fed President Neel Kashkari said the US central bank may not get as much aid from easing supply chains as it is hoping for in helping to cool inflation. 

Atlanta Fed President Raphael Bostic said he doesn't see the case for 75bps hikes yet. He already sees signs of peaking supply pressures and that should give the Fed room to hike at half-percentage-point interest rate increments for the next two to three policy meetings.