NZD/USD approaches four-month highs at 0.5850 as the US Dollar dives

NZD/USD is currently approaching a four-month high at 0.5850, driven by a weaker US Dollar. This represents a third consecutive day of appreciation for the New Zealand Dollar. The weakening dollar may be attributed to changing expectations around Federal Reserve’s monetary policy, as traders reassess the likelihood of further interest rate hikes, leading to a revived appetite for risk among investors. Technically, the 0.5850 level could act as a significant resistance point. A failure to surpass this level may lead to a retracement, while a breakout could open the doors for further upside potential. It is crucial for traders to closely monitor price action around this key level and adjust their strategies accordingly.