FxWirePro: NZD/USD firms as dollar struggles on concerns over U.S. data deterioration

• NZD/USD moved higher on Wednesday  as US dollar eased on mounting concerns about the US economy.

• The greenback continues to struggle after back-to-back data misses   Friday’s soft nonfarm payrolls followed by Tuesday’s weaker-than-expected ISM Services PMI  have cast doubt on the resilience of the U.S. economy.

• This has amplified expectations of monetary easing from the Federal Reserve, especially after Fed’s Daly reaffirmed support for two rate cuts this year.

• Meanwhile, New Zealand's jobless rate edged up in Q2, reflecting a soft labour market and reinforcing expectations of a 25 bps rate cut by the central bank in August.

• Markets are pricing in a 90% chance of a 25 bps cut to 3.0% by RBN on August 20, with a potential further cut to 2.75% later this year or early next.

•  Immediate resistance is located at 0.5929(Daily high), any close above will push the pair towards 0.5961 (SMA 20).

•  Support is seen at 0.5877(38.2%fib)and break below could take the pair towards 0.5845(Lower BB).

 Recommendation: Good to sell around 0.5930 with stop loss of 0.6000 and target price of 0.5860