FxWirePro: NZD/USD gains as U.S. dollar slips on debt concerns

• NZD/USD advanced  on Monday  as the U.S. dollar weakened due to concerns about U.S. debt and rising deficits after Moody's downgraded its U.S. sovereign credit rating late on Friday.

• Debt concerns deepened as Republicans neared approval of a major tax cut plan, potentially adding $3–5 trillion to the U.S.'s $36 trillion debt over the next decade..

• On the data front, New Zealand’s producer output prices rose 2.1% QoQ in Q1 2025, rebounding from a 0.1% decline in Q4 and posting the largest gain since Q2 2022.

• Meanehile, The New Zealand government will release its budget on Thursday, with officials confirming a cut in baseline spending to NZ$1.3 billion ($777 million), down from the previously forecast NZ$2.4 billion..

• At GMT 05:34, the New Zealand dollar was up 0.55% to 0.5912 against the   dollar.

•  Immediate resistance is located at 0.5935(38.2%fib), any close above will push the pair towards 0.5091 (May 14th May high).

•  Support is seen at 0.5862 (50%fib) and break below could take the pair towards 0.5836(Lower BB).

 Recommendation: Good to buy around 0.5900 with stop loss of 0.5820 and target price of 0.5970