FxWirePro: NZD/USD bearish momentum builds as dollar firms

• NZD/USD  dipped  on Tuesday as dollar firmed as traders awaited US data this week for clues to the Federal Reserve's rate path

• US economic data due later this week, including the PCE price index on Wednesday and nonfarm payrolls on Friday, will be closely watched for signals on the Federal Reserve's rate path..

• The figures are expected to reinforce the case for further rate hikes, with persistent inflation and a resilient labour market likely to keep pressure on the central bank to maintain a hawkish policy stance.

• The New Zealand government reported a narrower budget deficit on Tuesday and announced plans to reduce its planned debt issuance for the 2026/27 fiscal year by NZ$4 billion, bringing the total to NZ$30 billion.

• Markets are pricing in a 78% probability that the Reserve Bank of New Zealand will raise its policy rate by 25 basis points to 3.0% at its October 28 meeting, with expectations for another increase by February.

•  Immediate resistance is located at 0.5721(38.2%fib), any close above will push the pair towards 0.5768(SMA 20).

•  Support is seen at 0.5633(23.6%fib) and break below could take the pair towards 0.5608(Lower BB).

 Recommendation: Good to sell around 0.5680  with stop loss of 0.5760  and target price of 0.5600