FxWirePro: NZD/USD recovers majority of early losses

• NZD/USD    initially dipped but recovered ground  on Monday as the pair showed resilience despite escalating U.S.-Iran tensions that typically weigh on risk-sensitive currencies.

• Washington seized an Iranian cargo ship on Sunday for attempting to break its blockade, with Iran vowing a response and raising conflict concerns.

•Tehran said it would not participate in a ​second round of ​negotiations that the U.S. ⁠had hoped to kick off before the ceasefire expires on Tuesday.

•Meanwhile, Traders will be watching for New Zealand's first-quarter inflation data on Tuesday, after the central bank warned of decisive action if price pressures ramp up due to the war.

•Forecasts are centred on a 0.8% rise in headline inflation, slowing the annual pace to 2.9%, down from 3.1% in the prior quarter and back within the target band of 1% to 3%. However, the data will only capture the initial impact of the post-war oil spike.

•Inflation risks have led markets to aggressively bet on policy tightening from the Reserve Bank of New Zealand, laying 27% odds that it will lift the current 2.25% cash rate to 2.5% at the next meeting in May.

•  Immediate resistance is located at 0.5822(Daily high), any close above will push the pair towards 0.5920(38.2%fib).

•Support is seen at 0.5845(61.8%fib) and break below could take the pair towards 0.5807(Lower BB).

 Recommendation: Good to buy  around 0.5860 with stop loss of 0.5800  and target price of 0.5900