NZD/USD plummets towards 0.7250 as US dollar bulls are back

• Higher US bond yields and upbeat Fed’s comments on the economy behind the USD move.
• The NZD/USD long trade of last week is progressively unwinding. 

The NZD/USD is trading at around 0.7272 down 0.63% on Thursday as the USD bulls staged a come back in late European trading. 

Higher bond yields and upbeat comments by Fed´s members on the economy this week are boosting the greenback. US stocks are lower and so is gold.  

USD bulls entered from the front door lifting the US Dollar Index significantly for the second time this week. The index, which measures the greenback against a basket of currencies, is now trading in the 89.80 region now eyeing the 90.00 handle. The 89.50-89.60 consolidation has been left behind and now becomes a support area. 

The NZD bulls had nothing to really rely on, as overnight the New Zealand inflation came in-line with market's expectations and the kiwi had a small boost,  while the Chinese President last week talking about free trade became an old story and the Chinese Gross Domestic Product earlier in the week was not that impressive. 

Coming up next on the US calendar is the speech of Loretta Mester, FOMC member, scheduled at 22:45 GMT while no macroeconomic data is expected from New Zealand. 

NZD/USD 4-hour chart

Supports are seen at 0.7244 and at 0.7188 swing lows while resistance is priced in at 0.7344 swing high and at 0.7396 cyclical high.