• EUR/NZD edged lower on Wednesday as investors assessed cooler-than-expected US inflation data.
• US inflation rose less than expected in August, while price pressures in the previous month were revised lower, potentially reducing the urgency for the Federal Reserve to raise interest rates again in October..
• The Personal Consumption Expenditures Price Index rose 0.3% last month after a downwardly revised 0.1% gain in July, the Commerce Department's Bureau of Economic Analysis said..
• In the 12 months through August, PCE inflation advanced 3.4% after increasing by a downwardly revised 3.4% in July.
•Major central banks, including the Fed and ECB, have turned more hawkish this month as the Iran war pushed up energy prices, government finances deteriorated and heavy debt issuance added to market pressures.
• Immediate resistance is located at 2.0234(23.6%fib), any close above will push the pair towards 2.0275(Higher BB).
• Immediate support is seen at 2.0040(38.2%fib) and break below could take the pair towards 2.0012 (SMA 20).
Recommendation: Good to buy around 2.0080 with stop loss of 2.0000 and target price of 2.0180
