• NZD/USD drifts lower as On Tuesday as markets counted down to the Reserve Bank of New Zealand’s rate decision on Wednesday.
• Markets imply a 78% chance of a quarter-point rise in the 2.25% official cash rate and a majority of analysts polled also tip an increase .
•However, progress in the U.S.-Iran peace talks and the resulting tumble in oil prices could offer reason for policy makers to delay a tightening.
•Markets will focus on the RBNZ's policy statement for guidance on the path of further tightening, as the majority of economists anticipate another increase to 2.75% by September.
•Economic growth in New Zealand is forecast to recover to 1.7% this year from a subdued 0.2% in 2025, before strengthening to 2.4% in 2027.
• Immediate resistance is located at 05740(SMA 20), any close above will push the pair towards 0.574338.2%fib).
• Support is seen at 0.5625(23.6%fib)and break below could take the pair towards 0.5595(Lower BB).
Recommendation: Good to sell around 0.5700 with stop loss of 0.5830 and target price of 0.5630
