FxWirePro: NZD/USD dips as greenback gains some traction

• NZD/USD dipped on Thursday as the greenback steadied ahead of Friday’s August nonfarm payrolls report.

• U.S. non-farm payrolls for August are set to be released on Friday, with a Reuters poll projecting an increase of 78,000 jobs, up from 73,000 in July.

• The report will provide investors and the Federal Reserve with a clearer picture of the labor market, potentially influencing expectations for a rate cut this month.

•Several Federal Reserve officials indicated that ongoing labor market concerns support their view that rate cuts are forthcoming. Fed Governor Christopher Waller added that he believes the Fed should implement a cut at its next meeting.

•Meanwhile,Market  expect the Reserve Bank of New Zealand to deliver two additional rate cuts, which would lower the cash rate to 2.50%, its weakest level since mid-2022.

•  Immediate resistance is located at 0.5892(SMA 20), any close above will push the pair towards 0.5915(38.2%fib).

•  Support is seen at 0.5818(61.8%fib)and break below could take the pair towards 0.5790(Lower BB).

 Recommendation: Good to sell around 0.5870 with stop loss of 0.6630 and target price of 0.5820