The dollar is struggling to start the week, not helped by a fall in bond yields yesterday. And despite more tepid risk sentiment, the aussie and kiwi are still able to take advantage of the dollar's softness. Both the antipodean currencies are now looking to firm up key technical breakouts above their respective 200-day moving averages against the greenback:
Those are notable technical developments with AUD/USD potentially targeting its June and July highs while NZD/USD could be looking next towards the April, May, and July highs. For now, there is still some ways to go before we see that panning out but if the bond market plays ball, the dollar might be susceptible to an extended decline and I can see the above levels coming into play.
Month-end trading will make things a bit trickier in the sessions ahead but as always, the technicals will provide a good guide in reading overall trading sentiment and where we might be headed next.
For now, keep a watchful eye on bonds as that will have spillover impacts to both the dollar and risk mood.