FxWirePro: NZD/USD stays elevated as risk rally extends on trade progress

• 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