• NZD/USD strengthened on Wednesday as dollar weakened as President Trump backed off from firing Fed Chair Powell and signaled optimism for a U.S.-China trade deal..
• Trump expressed optimism that a U.S.-China trade deal could significantly lower tariffs on Chinese goods, suggesting the final agreement would be far from current rates.
• U.S. Treasury Secretary Scott Bessent stated a potential de-escalation in U.S.-China trade tensions, but warned that negotiations with Beijing have not started and will likely be a long process.
• Markets this week have been unsettled by concerns that the Fed's independence may be at risk, as Trump has repeatedly criticized Powell for not lowering interest rates since taking office in January.
• At GMT 06:14, The New Zealand's dollar was last trading up 0.50% to $0.5992
• Immediate resistance is located at 0.6018(23.6%fib), any close above will push the pair towards 0.6072 (Higher BB).
• Support is seen at 0.5928 (38.2%fib) and break below could take the pair towards 0.5852(50%fib).
Recommendation: Good to buy around 0.5930 with stop loss of 0.5860 and target price of 0.6080
