NZD/USD pair falls more than 1% on Monday.
US Dollar Index continues to edge higher above 100.
RBNZ will announce its policy rate decision on Wednesday.
After moving sideways near mid-0.61s during the Asian session, the NZD/USD pair lost its traction and dropped below 0.6100. Although the pair staged a technical rebound in the early trading hours of the American session, it failed to gather momentum. As of writing, the pair was trading at its lowest level in four days at 0.6068, losing 1.05% on a daily basis.
The broad-based USD strength on Monday seems to be weighing on NZD/USD. In the absence of significant macroeconomic data releases, the upbeat performance of US Treasury bond yields helps the greenback find demand. At the moment, the 10-year T-bond yield is up 2% on the day while the US Dollar Index (DXY) is gaining 1.1% at 100.20


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