• NZD/USD extended gains as on Thursday as renewed hostilities in the Gulf drove oil prices sharply higher, boosting expectations that inflationary pressures could keep the Reserve Bank of New Zealand on a tightening path.
• Investors are now pricing in a 74% chance the Reserve Bank of New Zealand tightens rates again in September, following Wednesday's increase to 2.50%. 0
•The hawkish outlook was also supported by a survey out on Thursday showing manufacturing activity rebounded in June to its strongest since mid-2021.
•This week's hike combined with the jump in oil to push two-year swap rates up a steep 12 basis points to 3.4850%.
.• Immediate resistance is located at 05737 (38.2%fib), any close above will push the pair towards 0.5828(50%fib).
• Support is seen at 0.5713(SMA 20)and break below could take the pair towards 0.5622(23.6%fib).
Recommendation: Good to sell around 0.5760 with stop loss of 0.5830 and target price of 0.5700
