FxWirePro: NZD/USD dips below lower range, bearish bias increases

• NZD/USD extended fall  on Friday as soft domestic jobs figures raised the risk of an outsized half-point rate cut to 2% from the Reserve Bank of New Zealand later this month.

• New Zealand’s unemployment rate rose to 5.3% in Q3, the highest since 2016, as employment levels remained largely unchanged, according to Statistics New Zealand data released Wednesday.

• New Zealand’s central bank chief stated on Thursday that the recent rise in the country’s unemployment rate, reaching its highest level since 2016 in the third quarter, was consistent with the bank’s expectations.
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• Ongoing weakness in New Zealand’s labor market, combined with muted wage growth, is expected to reinforce the case for a cash rate cut at the RBNZ’s November meeting.
 
•  Immediate resistance is located at 0.5644(Daily high), any close above will push the pair towards 0.5703(38.2%fib).

•  Support is seen at 0.506(23.6%fib) and break below could take the pair towards 0.5584 (Lower BB).

 Recommendation: Good to sell around 0.5610, with stop loss of 0.5670 and target price of 0.5560