• NZD/USD eased on Thursday as escalating geopolitical tensions in the Middle East and political uncertainty at home weighed on kiwi dollar.
• Geopolitical uncertainty remained a headwind for risk-sensitive currencies as Iran reported no progress toward a permanent ceasefire with the United States.
• New Zealand Prime Minister Christopher Luxon survived a confidence vote on Wednesday, fending off a leadership challenge from his defence minister that highlighted growing divisions within the National Party less than three months before a closely contested election.
• Luxon’s leadership has come under renewed scrutiny following a series of public missteps. Last week, he said during a live radio interview that he was open to holding a referendum on the country’s electoral system without first consulting his party colleagues.
•Meanwhile, U.S. inflation data came in broadly as expected, keeping the Federal Reserve rate-hike debate alive and providing some support to the U.S. dollar.
• Immediate resistance is located at 0.5909(61.8%fib), any close above will push the pair towards 0.5929 (Higher BB).
• Support is seen at 0.5851(50%fib) and break below could take the pair towards 0.5836(SMA 20).
Recommendation: Good to sell around 0.5850 with stop loss of 0.5950 and target price of 0.5780
