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FxWirePro: NZD/USD struggles to extend previous session's gains, risk-off poses major headwind

NZD/USD chart - Trading View 

NZD/USD was trading largely unchanged at 0.7158 at around 09:50 GMT, with session high at 0.7174 and low at 0.7147.

The pair is struggling to extend previous session's gains as risk-off market sentiment poses major headwind.

Investors turned cautious amid growing acceptance that rising inflationary pressures could force major central banks to hike interest rates earlier than anticipated.

Fed's dovish outlook kept the US Treasury bond yields subdued, weighing on the dollar and keeping downside in the pair limited.

NZD/USD has formed a spinning top on the daily candle at the time of writing. Moving averages are biased higher.

Focus on US inflation data due Wednesday for impetus. Analysts expect consumer price at 5.8% year-on-year, supporting the Federal Reserve's intent to be patient with interest rate hikes.

Price action has bounced off 200-DMA support and GMMA indicator shows near-term bias has turned bullish.

Bulls target 61.8% Fib at 0.7212. Bullish invalidation only on retrace below 200-DMA. 
 

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