FxWirePro: NZD/USD dips as geopolitical tensions weighs on Kiwi dollar

• NZD/USD dipped on Monday as  heightened tensions in the Middle East drove investors into the safety of the U.S. dollar.

• U.S. and Iranian forces exchanged heavy missile and drone assaults on the weekend, with Tehran targeting U.S. facilities in states across the Gulf on Sunday and saying it had again closed the vital Strait of Hormuz.

• The focus this week will be on the release of the U.S. June Consumer Price Index (CPI) on Tuesday, a key inflation report that could significantly influence expectations for the Federal Reserve's next policy move.

• RBNZ Chief Economist Paul Conway is set to speak on Tuesday on the impact of oil price shocks and inflation.

•Swaps now imply a 75% probability that the RBNZ will deliver a follow-up rate hike in September and are fully pricing in two more rate hikes this year.

•  Immediate resistance is located at 0.5792(July 10th high), any close above will push the pair towards 0.5826 (50%fib).

•  Support is seen at 0.5716(38.2%fib)and break below could take the pair towards 0.5668(Jun 8th low).

 Recommendation: Good to sell  around 0.5770 with stop loss of 0.5830 and target price of 0.5730