FxWirePro: NZD/USD hovers near three-week low, outlook bearish

• NZD/USD hovered near a three-week low on Tuesday as investors digested cautious comments from Fed Chair Jerome Powell on potential rate cuts and awaited U.S. inflation data later in the week.

•On Tuesday, Fed Chair Powell said the central bank must balance the competing risks of high inflation and a weakening labor market in upcoming rate decisions, even as colleagues voiced differing views on the policy path.

• Investors are fully priced for a quarter-point cut to 2.75% in October, with a one-in-four chance of 50 basis points.

•Meanwhile,New Zealand on Wednesday appointed Swedish national Anna Breman as its new central bank governor, making her the first woman to hold the role, following a major shakeup amid criticism of the bank’s economic management.

•  Immediate resistance is located at 0.5875(Aug 25th high), any close above will push the pair towards 0.5908(50%fib).

•  Support is seen at 0.5814(61.8%fib)and break below could take the pair towards 0.5814(Lower BB).

 Recommendation: Good to sell around 0.5860 with stop loss of 0.5960 and target price of 0.5800