• NZD/USD dipped on Friday as financial markets reacted to ongoing developments surrounding the Middle East situation.
• Volatility across currencies and broader risk assets has been driven largely by alternating headlines on U.S.–Iran negotiations, creating rapid swings in investor sentiment and keeping trading conditions unstable.
• Optimism remains fragile after reports emerged that Iran’s Supreme Leader has instructed that the country’s enriched uranium stockpile remain inside Iran, highlighting that major disagreements still persist despite diplomatic discussions.
• On the domestic front, New Zealand’s Q1 retail sales rose 0.9% quarter-on-quarter, matching the previous quarter’s pace and indicating that consumer spending has remained relatively stable despite higher interest rates and slower economic growth.
•NZD/USD remains highly sensitive to shifts in global risk sentiment, geopolitical headlines, and evolving Fed expectations, while the upcoming RBNZ meeting could provide the next major directional catalyst for the kiwi.
• Immediate resistance is located at 0.5886(50%fib), any close above will push the pair towards 0.5902(SMA 20).
• Support is seen at 0.5808(38.2%fib) and break below could take the pair towards 0.5789(Lower BB).
Recommendation: Good to sell around 0.5870 with stop loss of 0.5940 and target price of 0.5800
