NZD/USD tumbles to the 0.6450 area, lowest since June 2020

• US dollar holds onto daily gains, trading at the highest level in years.
• NZD/USD finds support at 0.6450, holds a negative bias.
• AUD/NZD approaches 1.1000 and retreats.

The NZD/USD dropped further after the beginning of the American session and bottomed at 0.6450, the lowest level since June 2020. Then it rebounded, unable to rise back above 0.6500, showing the bearish momentum is still high.

Dollar keeps running

The key driver in NZD/USD continues to be the stronger greenback. Economic data released on Thursday showed an unexpected contraction in the US economy during the first quarter. The numbers weakened the dollar only for a few minutes.

The DXY hit the highest level since 2002 at 103.92 and then pulled back modestly; is it hovering around 103.65. US yields are up on, even after the negative GDP reading. The US 10-year stands at 2.87% and the 30-year at 2.94%.

The Kiwi is also down versus the Australian dollar, although it trimmed losses during the last hours. The AUD/NZD is up for the third day and peaked at 1.0962, near the multi-year high it hit last week below 1.1000. The move off highs could show the Aussie is not ready to break 1.1000. If it manages to do, the kiwi will likely weaken across the board.

NZD/USD with support at 0.6450

The pair found support on Thursday at the 0.6450 area which is a relevant barrier; the next considerable resistance might be seen at 0.6375 (interim support at 0.6400). The kiwi needs to rise and hold above 0.6530 to alleviate the bearish pressure. Above the following resistance stands at 0.6585.

Technical levels