NZD/USD tumbles to lowest level in two years near 0.6120

• US Dollar Index jumps to highest level since December 2002.
• Wall Street indexes tumble more than 1%.
• NZD/USD vulnerable to more losses while under 0.6200.

The NZD/USD is losing almost 90 pips on Tuesday, hit by a stronger US dollar amid risk aversion. The greenback is rising sharply as stocks and commodities tumble. The pair fell to as low as 0.6123 on Tuesday, the lowest since May 2020. The rebound from the lows is facing resistance at 0.6150.

Fears about a global recession weigh on equity prices. In Wall Street, the Dow Jones is falling more than 550 points and the S&P 500 drops by 1.53%. Crude oil prices sank 5%. Gold is at $1,775 down 1.85% at the lowest since December.

The negative environment is pushing the dollar and government bonds to the upside. The DXY trades at 106.50, the highest level in two decades. The worst performers are emerging market currencies and the euro.

Under pressure below 0.6200

The NZDUSD failed to hold above 0.6200 and while it remains under it seems vulnerable to more losses. A recovery back above should alleviate the negative pressure. If the slide continues, the next support are could be seen at 0.6100 and then the area around 0.6070

NZD/USD weekly chart