FxWirePro: NZD/USD gains as Iran peace hopes boost risk sentiment

• NZD/USD rose on Monday  as improving prospects for peace between the U.S. and Iran boosted overall market risk appetite and supported higher-yielding currencies such as the New Zealand dollar.

• Investor sentiment improved after U.S. President Donald Trump said that a peace framework with Iran had largely been negotiated, encouraging demand for risk-sensitive assets across global markets.

• However, later comments suggesting that the United States was not rushing to finalize a deal were mostly overlooked by traders, with markets continuing to focus on the possibility of easing geopolitical tensions in the Middle East.

•Investors are also looking ahead to the upcoming policy meeting of the Reserve Bank of New Zealand on Wednesday, where policymakers are widely expected to leave the Official Cash Rate unchanged.

• Swaps imply around an 80% chance of a rate rise in July and 2.50% is fully priced for September, with rates seen reaching 3.5% over the next year or so.

•  Immediate resistance is located at 0.5889(50%fib), any close above will push the pair towards 0.5901(SMA 20).

•  Support is seen at 0.5849(Daily low) and break below could take the pair towards 0.5812(Lower BB).

 Recommendation: Good to buy  around 0.5860 with stop loss of 0.5770 and target price of 0.5940