NZD/USD struggles near session lows, bulls trying to defend 0.7200 mark

NZD/USD witnessed some selling on Tuesday and snapped two days of the winning streak.
Concerns about rising inflationary pressure underpinned the USD and exerted some pressure.
A sorter risk tone also contributed to the offered tone surrounding the perceived riskier kiwi.

Haresh Menghani FXStreet

The NZD/USD pair maintained its offered tone through the early European session and dropped to the 0.7200 mark, or fresh daily lows in the last hour.

Having struggled to make it through the 0.7240-45 resistance zone, the NZD/USD pair witnessed some selling on Tuesday and eroded a major part of the previous day's positive move. The pair, for now, seems to have snapped two consecutive days of the winning streak and was pressured by a goodish pickup in the US dollar demand.

Friday's softer NFP print tempered market expectations that the Fed could begin tapering its asset-purchases sooner rather than later. That said, worries over rising inflationary pressure held investors from placing any aggressive bearish bets around the USD, rather prompted some intraday short-covering move.

The USD bulls seemed rather unaffected by the ongoing decline in the US Treasury bond yields, instead took cues from a softer tone around the equity markets. This was seen as another factor that benefited the greenback's relative safe-haven status and further acted as a headwind for the perceived riskier kiwi.

Market participants now look forward to a relatively thin US economic docket, featuring the release of Trade Balance figures and JOLTS Job Openings later during the early North American session. This, along with the US bond yields and the broader market risk sentiment, might influence the USD and provide some impetus to the NZD/USD pair.

Technical levels to watch

NZD/USD

Overview
Today last price	0.7213
Today Daily Change	-0.0019
Today Daily Change %	-0.26
Today daily open	0.7232

Trends
Daily SMA20	0.7224
Daily SMA50	0.7173
Daily SMA100	0.7183
Daily SMA200	0.7022

Levels
Previous Daily High	0.7244
Previous Daily Low	0.7191
Previous Weekly High	0.7289
Previous Weekly Low	0.7126
Previous Monthly High	0.7317
Previous Monthly Low	0.7115
Daily Fibonacci 38.2%	0.7224
Daily Fibonacci 61.8%	0.7211
Daily Pivot Point S1	0.7201
Daily Pivot Point S2	0.7169
Daily Pivot Point S3	0.7148
Daily Pivot Point R1	0.7254
Daily Pivot Point R2	0.7275
Daily Pivot Point R3	0.7307

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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