• NZD/USD dipped on Tuesday as renewed geopolitical tension in the Middle East weighed on risk appetite and commodity-linked currencies.
• Reports suggesting Iran has paused communication with U.S. intermediaries raised fresh doubts over the progress of any peace negotiations.
• However, counter statements from Trump indicating that talks are still “continuing at a rapid pace” added confusion and volatility to sentiment.
• Brent crude surged intraday before closing 4.5% higher, after briefly spiking to $97.79 per barrel amid supply disruption fears.
• New Zealand’s Q1 terms of trade data, due Wednesday, will be closely watched, with attention on both import and export price trends for signals on external balance strength.
• 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 0.5907(Lower BB) and break below could take the pair towards 0.5901(50%fib).
Recommendation: Be on sideliness
