FxWirePro: NZD/USD edges lower as U.S. dollar firms on optimism over US government reopeningnew

• NZD/USD edged lower  on Tuesday  as the U.S. dollar gained on optimism that the government shutdown could soon be resolved.

• The U.S. Senate on Sunday cleared a preliminary vote on a deal to end the record-breaking government shutdown, though the timeline for final approval by Congress remains uncertain

• House Speaker Mike Johnson said the chamber could approve the bill as early as Wednesday and forward it to President Donald Trump for signing, provided the Senate moves swiftly..

• On the data front, New Zealand’s Q4 inflation expectations stayed subdued, with two-year expectations the Reserve Bank’s key policy gauge  unchanged at 2.28%, comfortably within the 1%–3% target band.

•Markets widely expect a 25-basis-point rate cut to 2.25% by RBNZ in late November, with only a 10% probability priced in for a larger 50-basis-point move.

•Mounting expectations for deeper rate cuts are putting sustained pressure on the New Zealand dollar, as investors anticipate that the Reserve Bank of New Zealand (RBNZ) may move more aggressively to support the slowing economy

 •  Immediate resistance is located at 0.5672(38.2%fib), any close above will push the pair towards 0.5711(SMA 20).

•  Support is seen at 0.5616(23.6%fib) and break below could take the pair towards 0.5600 (Psychological level).

 Recommendation: Good to sell around 0.5640, with stop loss of 0.5700 and target price of 0.5580