• NZD/USD dipped on Wednesday as renewed geopolitical tension in the Middle East weighed on risk appetite and commodity-linked currencies.
•Tensions in the Middle East persisted, with Israel continuing strikes on Lebanon despite a U.S.-mediated partial ceasefire.
•Global risk sentiment remained fragile as mixed U.S.-Iran signals kept investors cautious, while oil prices climbed to a 1-week high.
• New Zealand’s terms of trade fell 2.0% q/q in Q1 2026, missing expectations for a 1.2% decline, after a revised 3.7% rise in the previous quarter, according to Statistics New Zealand.
• Export prices sank 2.7 percent on quarter after jumping 5.3 percent in the previous quarter, while import prices dipped 0.7 percent.
• Immediate resistance is located at 0.5978(38.2%fib), any close above will push the pair towards 0.5999(Higher BB).
• Support is seen at 0.5914(50%fib) and break below could take the pair towards 0.5901(50%fib).
Recommendation: Good to sell around 0.5920 with stop loss of 0.5980 and target price of 0.5860
