NZD/USD is losing height after failing at 5-DMA

The NZD/USD is losing altitude, now trading at 0.7120 after failing to take out 5-DMA level of 0.7137. 

Treasury yields rise

The dollar continues to take back Tuesday’s losses after Fed’s Yellen said the central bank is close to achieving its mandate. 

Furthermore, the data released in the US yesterday showed inflation rose at a fastest pace in five years.

Consequently, the Treasury yields strengthened on Wednesday and are extending gains in the Asian session. At the time of writing, the 10-yr yield and 2-year yield was up 4 basis points and 2.4 basis points, respectively. The uptick in the yields is keeping the American dollar solidly bid in Asia.

NZD/USD Technical Levels

A break below immediate support at 0.7089 (200-DMA) would open doors for 0.7055 (50-DMA, which is sloping downwards). Further losses could run into bids around 0.70 handle. On the higher side, violation at 0.7137 (5-DMA) would expose 0.7149 (100-DMA) above which gains could be extended to 0.72 (zero figure).