The Kiwi pair staying on the back foot and it’s being underpinned by expectations of a rate hike by the Reserve Bank of New Zealand (RBNZ) on next month and Friday’s boosted U.S. jobs report that likely signaled the Federal Reserve would refrain from announcing any tapering plans sooner than expected and higher U.S. Treasury yields keeping the pair on edges.

Websites of a number of financial institutions in New Zealand and its national postal service were briefly down on Wednesday, with officials saying they were battling a cyber attack.  The country’s Computer Emergency Response Team (CERT) said it was aware of a DDoS (distributed denial of service) attack targeting a number of organisations in the country. ANZ and Kiwibank appear to have made progress recovering from a cyber attack that made their online services inaccessible for many New Zealanders on Wednesday.

On the other hand US dollar rose against major peers near a one-week high, which was due to higher treasury yields. The US dollar, which had fallen month following the August employment report on Friday, rose on yesterday. The dollar index has fallen to its lowest level since the beginning of August last weekend, with the surprisingly soft U.S. payroll report dropping the Federal Reserve from announcing a taper of stimulus at a policy meeting this month.

US traders’ return from an extended weekend brought strong greenback as market players relived the virus-led economic fears on the back of Friday’s downbeat US jobs report for August and ISM Services PMI data. Also roiling the mood were chatters over the US stimulus and roadblock for it. Data on Friday showed speculators’ net long bets on the U.S. currency grew in the latest week, with the value of the net long dollar position at $10.98 billion for the week ended Aug. 31, the largest long position since March 2020. The dollar also benefited from rising U.S. Treasury yields with the U.S. government selling new debt this week, including $58 billion in three-year notes, $38 billion in 10-year notes and $24 billion in 30-year bonds.

In New Zealand, there was positive news from the latest global auction of dairy, which saw prices rise 4% in a boom for farmers. Dairy is the country’s biggest export earner and has helped fuel a record-breaking rise in its terms of trade. That strength, combined with its success in containing a Delta outbreak, has seen markets fully price in a quarter-point rate hike from the Reserve Bank of New Zealand at its October policy meeting, and another 25 basis points in November too.

In the absence of high-tier macroeconomic data releases, the cautious market mood seems to be helping the USD find demand. The New Zealand market is looking for the fresh impetus.

NZD/USD 4 Hour Chart:

Support: 0.7074 (S1), 0.7047 (S2), 0.7007 (S3).

Resistance: 0.7140 (R1), 0.7179 (R2), 0.7206 (R3).

Amidst this above catalysts New-Zealand dollar is not in the hope of many traders and the Green back showing awesome moment today which could bring the New Zealand dollar down. We expect a bearish trend for NZD/USD.