NZD/USD is trading down by some 0.8% at the time of writing, falling from a high of 0.7003 to a low of 0.6915 on the day so far, correcting into the Wall Street close.

A sharp risk-off tone sent the Aussie off a cliff at the start of the week as worries about the Delta variant spread, a theme forecasted in the following early Asia article that can be read here:

Consequently, global shares dropped, and fixed income rallied. The higher beta currencies, such as the Kiwi, maintained their weaker bias.

Risk-off sentiment supported the USD. DXY is up for the third straight day and it has traded at its highest level since April 5 near 93, not far off the March 31 and YTD high near 93.437.