The NZD/USD pair posts modest gains near 0.5855 during the early Asian session on Friday. Nonetheless, ongoing conflicts in the Middle East might cap the upside for the Kiwi against the US Dollar (USD). Traders await the US Personal Consumption Expenditures (PCE) Price Index report for January later on Friday for fresh impetus.
US President Donald Trump said that preventing Iran from having nuclear weapons and threatening the Middle East is “of far greater interest and importance to me” than the cost of oil. Meanwhile, Iran’s new supreme leader, Mojtaba Khamenei, stated that Tehran would seek to ensure the Strait of Hormuz remains effectively closed. Traders could seek safety amid heightening geopolitical tensions, which might lift the US Dollar (USD) against the New Zealand Dollar (NZD).
Friday’s US inflation data, the Fed’s preferred price gauge, will take center stage…
