Kiwi Dollar Consolidates Below 0.59 Amid Middle East Uncertainty

The New Zealand dollar has been experiencing some hesitation in recent days due to external factors. The market is currently consolidating below the 0.59 level, with Christopher Lewis suggesting it may form a bullish pennant pattern.

Lewis notes that the NZD/USD pair shot higher two weeks ago but has since retreated. He attributes this to uncertainty surrounding geopolitical events in the Middle East and their potential impact on the New Zealand economy.

The market's focus is on breaking out above 0.5950, but Lewis cautions that there are too many questions and uncertainties at play to make a clear prediction. He suspects that the US dollar dynamics will be a key factor in determining the market's direction.