FxWirePro: NZD/USD bulls give back some overnight gains

• NZD/USD rose on Tuesday  as  escalating geopolitical tensions in the Middle East weighed on kiwi dollar.

  • Geopolitical tensions are becoming an increasing risk for the NZD as U.S.-Iran negotiations remain stalled. Iran has adopted a more confrontational stance, while uncertainty surrounding the Strait of Hormuz is raising concerns about further disruption to global oil supplies.

• Oil prices have returned to focus as supply concerns intensify. WTI climbed above $85 a barrel on Tuesday, while Brent moved above $91, with both benchmarks reaching their highest levels since late July as hopes for a U.S.-Iran agreement faded.

• Higher oil prices could complicate the global inflation outlook and potentially limit expectations for aggressive monetary easing. Rising energy costs have already contributed to higher bond yields and increased market concerns about persistent inflation.

• New Zealand’s July trade balance and August S&P manufacturing PMI are scheduled for Friday. Strong domestic data could reinforce expectations for continued RBNZ policy support and provide another catalyst for the New Zealand dollar.
 
•  Immediate resistance is located at 0.5932(38.2%fib), any close above will push the pair towards 0.5966(Higher BB).

•  Support is seen at 0.5861(50%fib) and break below could take the pair towards 0.5831(Aug 13th low).

 Recommendation: Good to buy around 0.5860 with stop loss of 0.5800and target price of 0.5940