NZD Tumbles Against USD as Middle East Tensions Rise
The New Zealand Dollar (NZD) took a hit against the US Dollar (USD) on Tuesday, weighed down by growing tensions in the Middle East. The US-Iran Memorandum of Understanding expired without progress in the peace process, causing investors to become risk-averse.
This sentiment shift led to a reversal of Monday's gains for the NZD/USD pair, which pulled back to the 0.5880 area before the US session opened. The pair had reached a high of 0.5926 on Monday but was rejected, and now faces resistance at the ascending trendline from late June lows, around 0.5860.
According to technical analysis, key support levels for the NZD/USD are at 0.5830 and 0.5834, which is also the 200-day simple moving average (SMA). A break below this level would confirm a deeper correction, aiming for the late July lows just above 0.5760.