FxWirePro:NZD/USD rallies as demand for USD dries up

• NZD/USD   rose on Tuesday  as   greenback weakened as resurgence of trade-war concerns sparked selling in U.S. assets.

•Donald Trump’s bid to assert control over Greenland by threatening additional tariffs has heightened market uncertainty and raised the risk of renewed trade tensions with Europe.

• A batch of domestic data, including business surveys and partial inflation indicators, has beaten expectations, reinforcing hopes that New Zealand’s economy is gaining traction following years of aggressive policy easing.

• Attention now shifts to fourth-quarter inflation data due Friday, with upside risks in focus. A Reuters poll forecasts a 0.5% quarterly rise, keeping annual inflation at 3%, the top of the central bank’s 1%–3% target range.

• Markets are pricing in almost no chance of a rate hike at the RBNZ’s February 18 meeting, with the next move not expected until July, where the odds are just over 50%.

•  Immediate resistance is located at 0.5862(Higher BB), any close above will push the pair towards 0.5885(38.2%fib).

•Support is seen at 0.5797(50%fib) and break below could take the pair towards 0.5737(Jan 19th low).

 Recommendation: Good to buy around 0.5820 with stop loss of 0.5750 and target price of 0.5900