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FxWirePro: NZD/USD continues to soften amid broader USD resurgence

• NZD/USD dipped to five month low on Friday as stronger-than-expected U.S. data lifted the dollar and reduced bets on further Fed easing.

• Data released Thursday showed weekly U.S. jobless claims fell, while second-quarter economic growth exceeded estimates on strong consumer spending and business investment.

•Attention now turns to Friday’s PCE data, which may shed light on the Federal Reserve’s rate outlook.

• Friday’s U.S. personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, is projected to rise 0.3% month-on-month and 2.7% year-on-year for August, according to a Reuters poll.

•  Immediate resistance is located at 0.5858(38.2%fib), any close above will push the pair towards 0.5895(SMA20).

•  Support is seen at 0.5757(23.6%fib)and break below could take the pair towards 0.5730(Lower BB).

 Recommendation: Good to sell around 0.5780 with stop loss of 0.5850 and target price of 0.5720

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