The pair is hitting fresh lows since May 2020 and is testing the 0.6000 handle on the day amid a stronger dollar and the fact that risk tones are still sluggish on the week. A further decline in the yuan also isn't helping sentiment as we transition from Asia to Europe but as the aussie is also under pressure, the kiwi will feel the heat as well.
In that sense, the psychological support for NZD/USD at 0.6000 sort of coincides with the key support region pointed out for AUD/USD in the linked post above.
As much as the RBNZ remains one of the more aggressive central banks alongside the Fed and BOC, it is hard to single the kiwi out among the crowd when risk sentiment is still looking rather pessimistic at the moment.
US futures are down on the day after another day of declines in Wall Street and the bond market selloff is also continuing to underpin the dollar via higher Treasury yields. Those are also notable factors to consider when viewing the pair and a break below 0.6000 will provide a strong technical argument for a move lower towards the March 2020 lows potentially next.
