FxWirePro: NZD/USD softens on renewed Middle East tensions

• NZD/USD   edged lower  on Tuesday   as global risk sentiment deteriorated amid renewed escalation in U.S.–Iran tensions..

• The US and Iran exchanged fire in the Persian Gulf on Monday, with the UAE also drawn into the situation, raising fresh doubts over the stability of a four-week ceasefire.

•The escalation followed President Donald Trump’s announcement of a plan to restore transit through the Strait of Hormuz and assist stranded vessels in exiting the region..

•Meanwhile, investors are now turning their attention to New Zealand’s first-quarter jobs report due on Wednesday for fresh clues on the economy’s health amid the energy shock from the Middle East conflict.

•RBNZ board member Prasanna Gai said that the model of the Strait of Hormuz disruption does not suggest a reflexive tightening bias, although it has raised the neutral rate.

•  Immediate resistance is located at 0.5902(50%fib), any close above will push the pair towards 0.5930(Higher BB).

•Support is seen at 0.5826(Lower BB) and break below could take the pair towards 0.5815(61.8%fib).

 Recommendation: Good to sell around 0.5900 with stop loss of 0.5960  and target price of 0.5770