US dollar continues to benefit from higher yields

April is a seasonally-weak month for the US dollar but it’s not starting out that way.

The dollar is gathering a broad bid at the moment, particularly against NZD, JPY and GBP.

NZD/USD is at the lowest levels since Monday and down 40 pips since the start of US trading. 1 hour chart:

NZDUSD 1 hour

Adding to the downward pressure on NZD is a bleed in US equities after a positive start.

It’s tough to glean too much today as it’s a Friday and the first trading day of the month. Bond sellers are certainly in charge and that’s the main mover. US 2-year yields are up 15 bps to 2.44%, which is challenging Tuesday’s cycle high.

Global yields are also moving up but not to the same extent.

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