April is a seasonally weak month for the US dollar, but that’s not how it starts.
The dollar is gathering a wide offer right now, especially against the NZD, JPY and GBP.
NZD/USD is at its lowest since Monday and down 40 pips since the start of US trading. 1 hour chart:
The downward pressure on the NZD adds to the bleeding in US equities after a positive start.
It’s hard to glean too much today because it’s a Friday and the first trading day of the month. Bond sellers are certainly in charge and that’s the main driver. US 2-year yields are up 15 basis points to 2.44%, challenging Tuesday’s cycle high.
Global yields are also increasing, but not to the same extent.