• NZD/USD eased slightly on Friday as investors hoped the worst outcomes had been avoided in the Middle East, though weekend peace talks still offered plenty of event risk
• Iran’s officials reached Islamabad on Thursday, with a U.S. delegation headed by Vice President JD Vance set to arrive Friday for peace discussions.
•U.S. inflation data is due later in the day, though markets' direction is more is likely to hang on the outcome of weekend talks between the U.S. and Iran in Islamabad.
• Meanwhile, the Reserve Bank of New Zealand this week flagged similar risks, with some policymakers favouring a pre-emptive hike in the 2.25% cash rate to curb inflation..
•As a result, markets are pricing in a 65% chance the RBA will hike in May, and an 88% probability the RBNZ will move to 2.5% in July.
• Immediate resistance is located at 0.5874(April 9th high), any close above will push the pair towards 0.5921(61.8%fib).
•Support is seen at 0.5819(38.2%fib) and break below could take the pair towards 0.5790(SMA 20).
Recommendation: Good to buy around 0.5820 with stop loss of 0.5770 and target price of 0.5880
