The retracement hits
The ongoing rise in Treasury yields had to bite eventually.
NZD/USD gained for six days in a row coming into today so it's not a surprise to see a retracement. In terms of news flow there isn't much. Rates are higher but equities are flat and economic data hasn't been a factor.
Technically though, we new have the potential for a bearish engulfing candle on NZD/USD, which has been the leader in the short-dollar trade recently.
It's a similar story in AUD/USD and USD/CAD. Watch the close to see if it holds up. If so it could be the start of a larger retracement.
