FxWirePro: NZD/USD edges lower, attention on Iran war and U.S. inflation data

• NZD/USD   edged lower on Monday as renewed U.S.-Iran tensions supported demand for the dollar..

• Stronger-than-expected U.S. job growth data boosted bets on a September interest rate hike by the Federal Reserve.

•Nonfarm payrolls rose by 162,000 jobs last month after an upwardly revised rise of 21,000 in July. Economists polled by Reuters had forecast an increase of 56,000 after a previously reported drop of 23,000 in July.

• U.S. inflation data will now be the key focus for markets, with producer price inflation (PPI) due on Wednesday followed by consumer price inflation (CPI) on Thursday.

  • Attention will also turn to the Reserve Bank of New Zealand, with Assistant Governor Silk scheduled to speak on Wednesday and Governor Breman due to speak on Thursday.

  • A surprisingly dovish Reserve Bank of New Zealand is largely to blame, with markets now pricing in an 80% chance for a policy pause next month after two rate hikes this year.

•  Immediate resistance is located at 0.5901(38.2%fib), any close above will push the pair towards 0.5908(SMA 20)

•  Support is seen at 0.5827(50%fib) and break below could take the pair towards 0.5811 (Lower BB).

 Recommendation: Good to sell  around 0.5880  with stop loss of 0.5950 and target price of 0.5800