• The New Zealand dollar hovered around 0.5940 on Wednesday as persistent trade uncertainty kept investor sentiment subdued.
• Investors stayed wary as mixed messages from the U.S. and China regarding the resolution of their trade dispute sparked concerns about the impact on global growth..
• Economic data highlighted the growing impact of trade tensions. The U.S. trade deficit in goods hit a record high in March as businesses brought in more merchandise ahead of tariffs.
• Meanwhile, the Conference Board’s consumer confidence index fell to its lowest level since May 2020, though job openings pointed to a relatively stable labor market.
•On the data front, The ANZ Bank survey showed that New Zealand’s business confidence dropped to a nine-month low in April, as most forward-looking activity indicators were weighed down by concerns over U.S. tariffs.
•Investors also expect the Reserve Bank of New Zealand will cut its 3.5% cash rate by another 25 basis points when it meets on May 28.
• Immediate resistance is located at 0.6000 (38.2%fib), any close above will push the pair towards 0.609(23.6%fib).
• Support is seen at 0.5926(50%fib) and break below could take the pair towards 0.5840(61.8%fib).
Recommendation: Good to buy around 0.5940 with stop loss of 0.5870 and target price of 0.6000
