The risk-sensitive New Zealand Dollar struggled against the US Dollar overnight as US equity traders carefully rotated out of growth stocks. Energy stocks rallied in Wall Street’s Monday session. Higher natural gas and oil prices appear to be behind the move. Crude oil rose to its highest level since July, while natural gas prices surged to a fresh multi-year high.
Treasury yields climbed again on Monday, extending a move from last week when the Federal Reserve signaled the central bank is moving closer to tapering balance sheet growth. The upward move in the short-end of the curve persisted, with the 2- and 5-year Treasury yields outpacing the longer-dated 10- and 30-year yields.