FxWirePro: NZD/USD softens as energy supply concerns return

• NZD/USD dipped on Wednesday  as renewed concerns over global oil supplies weighed on market sentiment and reduced demand for risk-sensitive currencies..

•Shipping through the Strait of Hormuz remains restricted despite conflicting U.S. claims, keeping global energy-supply risks elevated.

•New Zealand’s Q2 PPI showed stronger price pressures, with input prices rising 2.9% q/q and output prices increasing 1.6%, compared with 1.4% and 0.8% previously.

•Brent crude is up around 2.8% this week at approximately $91.02 a barrel as renewed supply concerns support oil prices.

•New Zealand’s July trade balance and August S&P manufacturing PMI are due Friday and could provide fresh direction for the kiwi.
 
•  Immediate resistance is located at 0.5927(61.8%fib), any close above will push the pair towards 0.5969(Higher BB).

•  Support is seen at 0.5845(SMA 20) and break below could take the pair towards 0.5835(50%fib).

 Recommendation: Good to buy around 0.5900 with stop loss of 0.5980 and target price of 0.5850