• NZD/USD held firm on Tuesday as optimism about a potential U.S.–China trade deal increased risk appetite.
• Attention will center on Thursday’s meeting between U.S. President Donald Trump and Chinese President Xi Jinping in South Korea.
• Chinese officials have remained cautious in their remarks on trade negotiations with the United States, offering few details about how the talks might conclude.
• The RBNZ Governor will deliver remarks on Wednesday, with markets expecting a cautious and dovish tone following the recent 50 bps rate reduction and continued signals of possible additional policy easing.
• Investors continue to expect the Reserve Bank of New Zealand to cut its 2.5% cash rate by 25 basis points in November, though the likelihood of a larger half-point move has largely faded.
• Immediate resistance is located at 0.5805(38.2%fib), any close above will push the pair towards 0.5843(Higher BB).
• Support is seen at 0.5762(SMA 20) and break below could take the pair towards 0.5690(23.6%fib).
Recommendation: Good to sell around 0.5800 with stop loss of 0.5860 and target price of 0.5700
