• NZD/USD slipped lower on Wednesday as renewed uncertainty around U.S.–Iran tensions weighed on broader risk appetite.
• The ongoing stalemate has kept investors cautious, reducing appetite for risk-sensitive currencies like the New Zealand dollar while supporting safe-haven flows into the U.S. dollar.
• Attention is also firmly on the Federal Reserve, where no change in the Federal Funds Rate is expected at Wednesday’s FOMC meeting.
• Markets will closely scrutinize Jerome Powell’s tone for any signals on the future policy path, especially regarding inflation persistence and geopolitical risks.
•On the domestic front, expectations are gradually building for a potential rate hike by the Reserve Bank of New Zealand in May. If incoming data continues to show sticky inflation or resilience in economic activity, the RBNZ may be compelled to tighten policy further.
• Immediate resistance is located at 0.5892(Daily high), any close above will push the pair towards 0.5915(50%fib)).
•Support is seen at 0.5848(SMA 20) and break below could take the pair towards 0.5837(61.8%fib).
Recommendation: Good to sell around 0.5870 with stop loss of 0.5960 and target price of 0.5770
