NZD/USD Price Forecast: Flirts with ascending trend-line near 0.5900 as traders eye RBNZ
The NZD/USD pair attracts some sellers following a modest intraday uptick to the 0.5930 region and languishes near the lower end of its daily range during the early European session on Tuesday.
The NZD/USD currency pair has been hovering near the 0.5900 level, attracting traders' attention as they wait for the Reserve Bank of New Zealand (RBNZ) to release its interest rate decision. The US Dollar (USD) has shown signs of strength, with traders pricing in a higher probability of a Federal Reserve (Fed) rate hike in September, driven by concerns over inflation due to rising energy prices and tensions between the US and Iran.
However, the NZD/USD pair is currently supported above the 200-period Simple Moving Average (SMA) at 0.5876, and traders are advised to wait for a break below the 0.5900 trend-line before considering a move to the 200-period SMA at 0.5876. The pair remains above the 100-period SMA at 0.5915, with initial resistance located at this level.
Positive economic developments or hawkish remarks from the RBNZ could bolster the NZD, while geopolitical tensions and hawkish expectations surrounding the Fed's interest rate outlook could exert downward pressure on the pair.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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