NZD/USD bears are moving in on 0.68 the figure

At 0.6815, NZD/USD is little changed on the day, down by some 0.13% at the time of writing towards the close of the North America session. There was some relief in terms of risk sentiment in the middy as Ukraine's tone of compromise with Russia was rehashed on Tuesday from comments made in prior sessions.

Overall, however, market risk sentiment remains low surrounding Mr Vladimir Putin's redlines and how far Ukraine can meet with them. The US has said it will ban imports of oil and gas from Russia which is keeping the oil price elevated, that did however slide on the prospects of a dialogue between Russia and Ukraine. 

An interview between Ukraine's president, Volodymyr Zelenskyy, and ABC News from Monday night that was published by The Associated Press picked up on the fact that Ukraine is no longer pressing for NATO membership for Ukraine. Zelensky said he is open to "compromise" on the status of two breakaway pro-Russian territories that President Vladimir Putin recognized as independent just before unleashing the invasion on February 24.

''That seems to be stoking optimism of a possible de-escalation,'' analysts at ANZ bank said. ''Stepping back though, FX markets remain volatile and there are cross-currents aplenty for the NZD still, with higher commodity prices and short end rates (the 2y swap closed at 2.905% yesterday) going head to head with wavering risk appetite, fears of stagflation, sinking domestic confidence and clear signs of wobbles in the housing market. NZD trading conditions thus still look very mixed.''