FxWirePro: NZD/USD extends rally as trade uncertainty undermines greenback

• NZD/USD rose higher on Monday as risk appetite improved after U.S. President Donald Trump postponed his threat to impose 50% tariffs on EU goods by more than a month.

• Trump agreed to extend the trade talks deadline to July 9, moving it from the original June 1 date set on Friday, after European Commission President Ursula von der Leyen requested more time to  reach a good deal.

• Data releases are relatively light this week, with the key highlight being the Fed’s preferred inflation gauge, Personal Consumption Expenditures (PCE) for April, due on May 30. This report could offer clearer insights into the effects of U.S. tariffs.

• The Reserve Bank of New Zealand is set to meet on Wednesday, with a widely expected rate cut to 3.25%, though there is still uncertainty about its future policy direction.

• At GMT 06:18, the New Zealand dollar was up 0.79% to 06028 against the   dollar.

•  Immediate resistance is located at 0.6028(38.2%fib), any close above will push the pair towards 0.6136(23.6%fib).

•  Support is seen at 0.5984(Daily low) and break below could take the pair towards 0.5949(50%fib).

 Recommendation: Good to buy around 0.6000 with stop loss of 0.5920 and target price of 0.6080