- NZD/USD witnesses selling on Tuesday and snaps a four-day winning streak to a multi-week high.
- The cautious market mood exerts pressure on the risk-sensitive kiwi amid a modest USD bounce.
- Diminishing odds for aggressive Fed rate hikes, sliding US bond yields could cap gains for the USD.
- Investors eye US Job Openings for some impetus ahead of NZ employment figures on Wednesday.
The NZD/USD pair attracts some selling on Tuesday and erodes a major part of the previous day’s gains to the highest level since June 21. Spot prices weaken further below the 0.6300 mark during the early European session and for now, seem to have snapped a four-day winning streak.
The prevalent cautious mood is turning out to be a key factor that acted as a headwind for the risk-sensitive kiwi. The market sentiment remains fragile amid growing worries about a global economic downturn. Apart from this, jitters about the impact of an impending visit to Taiwan by US House of Representatives Speaker Nancy Pelosi further temper investors’ appetite for riskier assets.