• EUR/NZD edged higher on Monday as higher oil prices amid renewed U.S.-Iran tensions stoked inflation concerns, outweighing stronger-than-expected euro zone data.
• The New Zealand dollar has come under pressure since the central bank raised interest rates earlier this month and signaled a slower pace of future policy tightening..
• Investors continue to see another rate hike in October as likely, with higher oil prices increasing pressure on inflation.
• RBNZ Governor Anna Breman will provide an economic update on Tuesday, with markets looking to her comments for further guidance on monetary policy and future rate moves.
•Meanwhile, U.S. President Donald Trump is scheduled to meet Chinese President Xi Jinping in Washington this week. Investors will closely monitor the meeting for signals on U.S.-China trade relations, economic ties and the broader outlook for global markets.
• Immediate resistance is located at 2.0130(38.2%fib), any close above will push the pair towards 2.0209 (Higher BB).
• Immediate support is seen at 2.0000 (Psychological level) and break below could take the pair towards 1.9900(50%fib).
Recommendation: Good to buy around 2.0000 with stop loss of 1.9950 and target price of 2.0100
