FxWirePro: NZD/USD firms, Q1 unemployment rate shows Improvement

• NZD/USD   rose higher on Wednesday  as  kiwi dollar was boosted by labour market data.

• New Zealand’s unemployment rate eased to 5.3% in Q1, but weak wage growth and labour market slack kept expectations for a rate hike by July unchanged..

• The central bank will closely watch wage inflation for signs of persistent price pressure, though Q1 data likely reflects only limited impact from the war.

• RBNZ held its official cash rate at 2.25% in April to assess the impact of Middle East tensions, but warned it would respond decisively if inflation rises..

• Market pricing shows a 35% chance of a rate hike later this month and has fully priced in a hike by the July meeting.

•  Immediate resistance is located at 0.5951(Higher BB), any close above will push the pair towards 0.6002(38.2%fib).

•Support is seen at 0.5926(50%fib) and break below could take the pair towards 0.5884(SMA 20).

 Recommendation: Good to by around 0.5920 with stop loss of 0.5830  and target price of 0.5980