FxWirePro: NZD/USD gains some ground but outlook is strongly bearish

• NZD/USD firmed  on Thursday   as investors to reassessed the Federal Reserve’s monetary policy outlook after hotter-than-expected US inflation data.

•   US consumer prices accelerated in September as the cost of gasoline surged. Traders are pricing in about a 29% chance of a rate hike later this month, compared with 22% before the data .

• The market’s attention will now turn to US producer price index (PPI) and retail sales data due later in the day. The PPI report is expected to show a sharp increase in business costs last month, potentially adding to concerns over persistent inflationary pressures.

•Investors will also watch remarks from Fed officials including Chair Kevin Warsh at IMF-World Bank annual meetings in Bangkok today for clues on the US central bank's next move.

•New York Federal Reserve President John Williams said the Fed may need to raise its policy rate once more this year to slow inflation, but that he sees no need for hikes in 2027.

•  Immediate resistance is located at 0.5636 (SMA 20), any close above will push the pair towards 0.5673(38.2%fib).

•  Support is seen at 0.5563 (23.6%fib) and break below could take the pair towards 0.5552 (Lower BB ).

 Recommendation: Good to sell around 0.5630  with stop loss of 0.5700 and target price of 0.5550