NZD/USD Trapped in Range as Iran Tensions and US Inflation Data Loom
The New Zealand Dollar (NZD) has remained within a narrow trading range against the US Dollar (USD) due to concerns over escalating geopolitical tensions in the Middle East and upcoming US Consumer Price Index (CPI) data.
Investors are weighing the risks of supply disruptions following recent incidents involving Iran, which has provided some safe-haven support to the USD. However, firm commodity prices and a positive risk appetite have helped the NZD find some support in early Asian trading.
The release of US CPI data later today will be closely watched by traders, as it could provide fresh clues on the Federal Reserve's monetary policy path. A hotter-than-expected reading could reinforce expectations of prolonged higher interest rates, boosting the USD and putting downward pressure on NZD/USD.
From a technical perspective, NZD/USD has been trading within a well-defined range, with immediate support seen around 0.5900 and resistance at 0.5950, followed by the 0.6000 psychological level.