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

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

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

The USD bulls seemed rather unaffected by the continued decline within the US Treasury bond yields, instead took cues from a softer tone round 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 anticipate to a comparatively thin US economic docket, featuring the discharge of balance of trade figures and JOLTS Job Openings later during the first North American session. This, along side the US bond yields and therefore the broader market risk sentiment, might influence the USD and supply some impetus to the NZD/USD pair.

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