NZD/USD: bears in control, looking for break of 0.7210

• NZD/USD: below the 21 and 55-D MAs, leaning bearish on the charts.
• NZD/USD: greenback is up to test the 90 handle in the DXY, spells stronger for longer and lower commodity bloc.

NZD/USD has been under pressure on a resurgence in the dollar as inflationary fears sparked up a risk-off session in NY, sending stocks and the commodity bloc lower. Currently, NZD/USD is trading at 0.7271, up 0.02% on the day, having posted a daily high at 0.7275 and low at 0.7268.

Wall Street bears take the lead after three days of gains

As analysts at ANZ explained, the 'patchy earnings' but stronger inflation fears hit stocks overnight and the NZD followed suit. "It is on the defensive and likely to remain that way today. It is a backdrop we expect to be more common as we enter a realm of tighter global liquidity, more mixed global growth and higher volatility," the analysts added.  

The US treasury bear curve bear steepened while the 2 years were largely unchanged and the 10 years were up 4bps to 2.91%. At the same time, the European yields were also sharply higher while in the UK the 10-year yield climbed 10bps to 1.52%. The DXY traded between 89.504 - 89.952, rallying towards 90.00.

NZD/USD levels

NZD/USD broke the cloud top and 21 & 55-DSMAs and then slid further on sour risk, dropping below 0.7265 before closing after an end of shift bounce to top of the cloud again. However, the technical outlook leans bearish. The daily RSI is falling and the pair is offered below 21 & 55-DSMAs. note, there is a long upper wick on the monthly sticks. Immediate support is located at 0.7210 and resistance is located at 0.7280.