US Treasury yields pressure Australian and New Zealand dollars

The Australian and New Zealand dollars have faced pressure against the US Dollar due to rising US Treasury yields. The US 10-year yield reached its highest level since 2023 following a US Treasury announcement regarding a buyback of outstanding securities.

The Australian Dollar remained largely flat as market participants weighed hawkish signals from the Reserve Bank of Australia (RBA) against rising US yields and geopolitical risks in the Middle East near the Strait of Hormuz. RBA Deputy Governor Hauser indicated that upcoming debates will focus on potential interest rate hikes.

Meanwhile, the New Zealand Dollar extended its losses, dropping 0.30% against the US Dollar. Technical indicators suggest the NZD/USD pair may continue to consolidate or face further downside if key support levels are breached.