FxWirePro: NZD/USD edges lower, set to stay on back foot

•  NZD/USD slipped lower on Tuesday as the U.S. dollar strengthened amid fading expectations of a Fed rate cut next month..

•A backlog of economic data delayed by the federal government shutdown is set to be released this week, offering insights into the health of the U.S. economy, with the key September nonfarm payrolls report scheduled for Thursday.

•Despite signs of further weakness in the U.S. economy from recent private-sector data, investors have trimmed expectations of a Fed cut next month, betting that gaps in economic data will delay or even derail further easing.

• Fed Vice Chair Philip Jefferson said on Monday the U.S. central bank needed to "proceed slowly" with further rate cuts, denting expectations for a decrease next month.

• Markets are now pricing in less than a 40% chance of a 25-basis-point rate cut in December, down from more than 60% earlier this month.
 
•  Immediate resistance is located at 0.5691(38.2%fib), any close above will push the pair towards 0.5700 (SMA 20).

•  Support is seen at 0.5640 (38.2%fib) and break below could take the pair towards 0.5600 (Psychological level).

 Recommendation: Good to sell around 0.5650, with stop loss of 0.5700 and target price of 0.5600