Weighed By Higher US Yields, Support Evident Around 0.6220

NZD/USD found support around the 0.6220 level late in Thursday NY trade, a similar support zone from Wednesday's session. We currently track in the 0.6230/35 region, having lost ~0.25% for Thursday's session. Broader USD trends were mixed, yen continued to falter but the European currencies rose against the USD. The BBDXY is slightly higher at 1225.

• ADP data and lower initial jobless claims supported the US yield backdrop, with firmer yields across the curve, led by the back end (10yr back to 4%, +8bps). Projected rate cuts for early 2024 continue to cool as well after surging higher post Dec'23 FOMC.
• Equity sentiment was mixed, with US markets down (SPX -0.34%) but EU markets higher.
• NZD/JPY still climbed, with weaker yen trends underpinned by the continued US yield recovery. The pair is back above 90.00.
• For NZD/USD we are back sub the 20-day EMA (0.6244), but support appears evident around the 0.6220 level from recent sessions.
• The local data calendar remains empty today, leaving the Kiwi likely influenced by broader risk appetite swings.