FxWirePro: NZD/USD recovers amid pause in greenback demand, Geopolitics still in focus

• NZD/USD edged higher   on Friday pause in safe-haven USD demand provided room for the kiwi dollar to recover, as market participants digested ongoing developments in the Middle East.

• A week-long air war between Israel and Iran continues, driven by Israel’s efforts to halt Iran’s pursuit of nuclear capabilities.

• The White House announced that President Donald Trump will decide within two weeks whether the U.S. will join Israel in the conflict. While this eased immediate fears of a U.S. strike on Iran, lingering concerns over a wider Middle East war continued.

• Q1 GDP in New Zealand exceeded expectations, but a lackluster performance in business investment tempered the overall outlook.

•  Markets see little chance of a July rate cut from the Reserve Bank of New Zealand, but odds of an August move have risen above 60%.

• Immediate resistance is located at 0.6066(23.8%fib), any close above will push the pair towards 0.6093(Higher BB).

•  Support is seen at 0.5970(38.2%fib)and break below could take the pair towards 0.5931(Lower BB).

 Recommendation: Good to buy around 0.5980 with stop loss of 0.5900 and target price of 0.6080