The New Zealand Dollar climbs to 10-day highs against the USD as a US-Iran peace deal weighs on the safe-haven Dollar ahead of the Fed decision.
The NZD/USD pair extended gains to trade above 0.5850, reaching 10-day highs on Monday. The rally follows a US-Iran peace agreement, which has dampened demand for the safe-haven US Dollar and pushed oil prices lower. Investors are also eyeing the Federal Reserve’s monetary policy decision on Wednesday, with rates expected to remain unchanged.
Market sentiment improved after US President Trump announced a potential signing of the Iran deal on Friday, though details on Iran’s nuclear program remain unresolved. The only notable macroeconomic event on Monday is US Industrial Production data, but the Fed’s statement will dominate attention this week.
Technical indicators suggest a mildly bullish bias, with the pair holding above the neckline of an inverted Head & Shoulders pattern. The RSI on the 4-hour chart stands near 60, while the MACD line remains above its signal line.