NZD/USD Bulls Eye Breakout Above 0.59 Amid Ongoing Tensions

The NZD/USD pair is consolidating near the 0.5870 region, after trading tepidly in the first half of the European session on Tuesday.

This comes after a recent bounce from the 200-period Simple Moving Average (SMA) and a breakout through the 0.5865 supply zone, which triggered key triggers for NZD/USD bulls.

The Reserve Bank of New Zealand's (RBNZ) hawkish tilt is helping to limit losses for the New Zealand Dollar (NZD), but recovering crude oil prices are reviving inflation fears and fueling US Federal Reserve (Fed) rate hike bets, which supports the US Dollar (USD).

Iran denied that any negotiations were taking place with the US, dampening hopes for a diplomatic resolution to end a five-month-old conflict.