• NZD/USD strengthened on Wednesday as concerns over the U.S. economy and fiscal outlook weakened the U.S. dollar.
• On Tuesday, Trump urged Republicans in Congress to unite behind a comprehensive tax-cut bill but struggled to win over a few holdouts who could still block the legislation, which covers much of his domestic agenda.
• Traders remained cautious amid speculation that U.S. officials might be aiming for a weaker dollar during the ongoing Group of Seven finance ministers’ meetings in Canada.
• On the data front, New Zealand’s trade surplus surged to NZ$1.43 billion in April, driven by strong dairy and fruit export growth, Stats NZ reported.
• At GMT 05:34, the New Zealand dollar was up 0.55% to 0.5912 against the dollar.
• Immediate resistance is located at 0.5960(38.2%fib), any close above will push the pair towards 0.6013 (Higher BB).
• Support is seen at 0.5886(50%fib) and break below could take the pair towards 0.5857(Lower BB).
Recommendation: Good to buy around 0.5930 with stop loss of 0.5820 and target price of 0.6000
