NZD/USD hits fresh two-year lows under 0.6100

• US Dollar rises across the board on risk aversion.
• DXY hits the highest level since October 2002.
• NZD/USD unable to regain 0.6200 and breaks the 0.6130 support.

The NZD/USD is falling on Monday and it printed a fresh two-year low at 0.6096, before trimming losses to 0.6130. The pair is under pressure amid risk aversion that continues to boost the US dollar.

The greenback, measured by the DXY, hit a fresh 19-year high above 108.00. The move took place even as US yields tumble. The US 10-year stands at 2.98%, down more than 3% while the 30-year is at 3.16%. In Wall Street, the Dow Jones falls by 0.32% and the Nasdaq by 1.85%.

Concerns about the economic outlook continue to weigh on market sentiment. New COVID-19 restrictions in China added to fears about global growth.

Regarding economic data, the focus is set on the June US CPI due on Wednesday. Earlier that day, the Reserve Bank of New Zealand will announce its decision on monetary policy. A 50 basis points rate hike to tame inflation is expected.

Breaking support

The NZD/USD dropped below the 0.6130 strong support area. If the pair consolidates below, more losses seem likely. A recovery back above could alleviate the pressure, favoring a return to the 0.6200/0.6130 range.

Technical levels