NZD/USD desperately trying to recover the 0.69 level, but rising yields are bolstering the Greenback

• Kiwi trying to push back as the Dollar crushes on rising yields.
• NZ government budget release on Thursday will be a head-turner; any nasty surprises could easily see the NZD give up and head lower.

The NZD/USD is lifting slightly in the Asia session, testing near 0.6875.

The Kiwi is continuing its decline against the Greenback this week, slipping into fresh five-month lows amidst a selloff in US Treasuries that sees the 10-year Treasury yield climb to its highest point since 2011. Climbing Treasury yields are driving the US Dollar higher across the board, while the Kiwi continues to slump in its own right.

It's a limited schedule for the NZD this week, although the New Zealand government will be dropping the latest iteration of their budget this Thursday at 02:00 GMT. The NZD has been getting crushed by a never-ending stream of stagnant and disappointing economic data, and the Reserve Bank of New Zealand is expected to stand pat on rates well into 2020.

NZDZ/USD levels to watch

Kiwi bulls hoping for a recovery face hefty resistance looking upwards, and as FXStreet's own Haresh Menghani noted, "any subsequent recovery beyond 0.6925 level is likely to confront resistance near the 0.6960 region, above which the pair is likely to move back towards reclaiming the key 0.70 psychological mark. On the flip side, weakness back below the 0.6900-0.6890 region now seems to pave the way for an extension of the pair's downslide further towards 0.6855 horizontal support."