The currency pair remains steady amid mixed signals from US-Iran tensions and Fed rate hike expectations.
The NZD/USD pair traded near 0.5870 on Tuesday, holding steady after retreating from a two-month high above 0.5900. The pair showed little movement as traders awaited clearer signals amid geopolitical uncertainty and shifting monetary policy expectations.
Recent denials of US-Iran negotiations weighed on risk sentiment, while rising crude oil prices fueled inflation concerns and bolstered bets on Federal Reserve rate hikes. This supported the USD, capping gains for the NZD. However, the Reserve Bank of New Zealand’s hawkish stance helped limit losses for the kiwi.
Technical indicators remain mixed, with the RSI near 60 and the MACD slightly below its zero line. A breakout above 0.5865 reinforced a near-term bullish bias, though consolidation persists above this level.