FxWirePro: NZD/USD holds steady as US dollar softens

• NZD/USD steadied  on Monday as   U.S. dollar softened   as bleak U.S. labour data boosted Federal Reserve rate cut hopes .

• U.S. job growth slowed sharply in August, with the unemployment rate rising to a nearly four-year high of 4.3 .

• Weak U.S. jobs data has strengthened the case for the Federal Reserve to implement an interest rate cut at its meeting next week, as slowing employment growth underscores a softening labor market and rising economic caution.

• Investors and market participants will closely watch Thursday’s inflation report to assess the extent of potential easing and its implications for future monetary policy.

• Meanwhile, Reserve Bank of New Zealand Chief Economist Paul Conway is set to deliver a speech on Wednesday, where market participants will be closely watching for insights on the country’s economic outlook.

• The RBNZ is projected to deliver two more cuts, driving the cash rate to 2.50%, its softest level since mid-2022.

•  Immediate resistance is located at 0.5923(38.2%fib), any close above will push the pair towards 0.5944(Higher BB).

•  Support is seen at 0.5888(SMA 20)and break below could take the pair towards 0.5828(23.6%fib).

 Recommendation: Good to sell around 0.5930 with stop loss of 0.6860 and target price of 0.6600