• NZD/USD moved higher on Thursday as U.S. support for longer-term bonds failed to dispel concerns about the country’s escalating debt.
• The dollar softened as Treasury yields eased after the U.S. government introduced measures to bolster demand for longer-term bonds.
• Market sentiment remains sensitive to developments in the Middle East. The lack of progress in U.S.-Iran peace negotiations has left the status of the Strait of Hormuz uncertain, keeping oil prices elevated.
• Looking ahead, traders will focus on New Zealand’s July trade balance and August S&P manufacturing PMI due Friday for fresh clues on the domestic economic outlook and the Reserve Bank of New Zealand’s policy path..
• Immediate resistance is located at 0.5879(50%fib), any close above will push the pair towards 0.5953(Higher BB).
• Support is seen at 0.5766(38.2%fib) and break below could take the pair towards 0.5745 (Lower BB).
Recommendation: Good to buy around 0.5940 with stop loss of 0.5780 and target price of 0.6000
