• NZD/USD firmed on Tuesday as a recovery in global risk sentiment supported demand for risk-sensitive currencies like the New Zealand dollar.
• Comments from U.S. President Donald Trump indicating that Iran remains open to negotiations helped calm fears of an immediate escalation, encouraging investors to re-enter higher-yielding assets.
• At the same time, oil prices moderated, with WTI futures falling 2.6% on Tuesday, while the U.S. dollar index slipped 0.3% . The softer dollar provided additional tailwinds for NZD/USD, allowing the pair to extend its recovery.
• However, underlying geopolitical risks persist, as Iran has threatened retaliation following the implementation of a U.S. maritime blockade.
• On the macro front, attention now turns to New Zealand’s March electronic card retail sales data due Friday. The previous reading showed solid growth (+1.4% m/m, +1.5% y/y), and another strong print could reinforce confidence in domestic consumption.
• Immediate resistance is located at 0.5888(38.2%fib), any close above will push the pair towards 0.5917(Higher BB).
•Support is seen at 0.5856(Daily low) and break below could take the pair towards 0.5806(61.8%fib).
Recommendation: Good to buy around 0.5850 with stop loss of 0.5780 and target price of 0.5880
