• NZD/USD eased on Wednesday as risk sentiment soured after a hot U.S. inflation reading.
•The U.S. consumer price index (CPI) rose 3.8% in the 12 months through April, the biggest year-on-year increase since May 2023, as the oil shock triggered by the war with Iran pushed prices higher.
• Meanwhile,hopes for a Middle East peace deal faded after Donald Trump said the Iran ceasefire was “on life support,” following Tehran’s rejection of a U.S. proposal to end the war and demands Trump dismissed as “garbage.”
•The conflict in the Middle East remained in a stalemate, as U.S. President Donald Trump said on Tuesday he does not think he will need China's help to end the war with Iran.
• Markets have mostly ruled out a Fed rate cut this year, while expectations for at least a 25-bps hike in December have risen to 35%, according to CME’s FedWatch Tool.
• Immediate resistance is located at 0.5974(Higher BB), any close above will push the pair towards 0.6000(Psychologicallevel).
• Support is seen at 0.5924(38.2%fib) and break below could take the pair towards 0.5904(SMA 20).
Recommendation: Good to buy around 0.5920 with stop loss of 0.5850 and target price of 0.6000
