• NZD/USD drifted lower as On Tuesday a investors focused on upcoming inflation data for clues on the U.S. interest-rate outlook.
• Markets await Wednesday’s U.S. July core CPI, forecast at 2.5% YoY, followed by Thursday’s PPI, expected at 4.9% YoY, for fresh clues on the Fed’s policy outlook.
• On geopolitical front,U.S.-Iran negotiations remain uncertain, with both sides seeking reparations, raising the risk of delays in peace talks.
• The RBNZ’s Q3 expectations survey on Thursday will be closely monitored for signals on inflation and the central bank’s policy path.
• Futures markets currently price an 86.5% probability of a 25-bps RBNZ rate hike on September 2.
• Immediate resistance is located at 05917(61.8%fib), any close above will push the pair towards 0.5949(Higher BB).
• Support is seen at 0.5844(SMA 20)and break below could take the pair towards 0.5814(38.2%fib).
Recommendation: Good to sell around 0.5900 with stop loss of 0.5950 and target price of 0.5830
