• NZD/USD edged higher on Tuesday as investors increasingly priced in the likelihood of another interest rate hike from the Reserve Bank of New Zealand.
• Money markets now imply a 70.5% probability that the RBNZ will raise the Official Cash Rate by 25 basis points at its July 8 policy meeting, reflecting expectations that policymakers will maintain a hawkish stance to ensure inflation continues to moderate toward the central bank's target...
• The prospect of higher New Zealand interest rates has provided some support for the kiwi, although gains remain restrained by cautious global market sentiment.
• Investors continue to monitor geopolitical developments in the Middle East after conflicting statements from Washington and Tehran created uncertainty over the prospects for peace talks in Qatar scheduled for Tuesday.
• Attention is now shifting toward Thursday's U.S. non-farm payrolls report, one of the week's most significant economic releases. According to a Reuters poll, economists expect the U.S. economy to have added around 110,000 jobs in June.
• Immediate resistance is located at 0.5740(38.2%fib), any close above will push the pair towards 0.5760(SMA 20).
• Support is seen at 0.5628(23.6%fib) and break below could take the pair towards 0.5555(Lower BB).
Recommendation: Good to sell around 0.5670 with stop loss of 0.5830 and target price of 0.5620
