Ella 
In the Asian market on Tuesday, the NZD/USD fluctuated within a narrow range and consolidated its recent decline, falling to the lowest level since November 14th hit the previous day. NZD/USD is holding steady near the mid-0.5900 level and looks set to extend its multi-week downward trend.
U.S. economic data released on Monday showed that manufacturing purchasing managers’ indexes rose in March for the first time since September 2022, with the dollar standing near its highest level since February 2024. The U.S. ISM Manufacturing Purchasing Managers’ Index rose to 50.3 in March from 47.8 the previous month, ending 16 consecutive months of contraction. That forced investors to pare their bets that the Federal Reserve would start cutting interest rates in June, triggering a fresh rise in U.S. Treasury yields and supporting the dollar.
Indeed, interest rate-sensitive two-year Treasury yields and 10-year Treasury yields climbed to two-week highs, coupled with the market maintaining risk aversion, which should benefit the safe-haven dollar and encourage capital flows into the U.S. dollar. Risk-sensitive New Zealand dollar. Reserve Bank of New Zealand Governor Adrian Orr said the Monetary Policy Committee will continue to focus on controlling inflation. Orr also said the central bank was working to bring inflation back to its target range.
