• NZD/USD dipped to five month low on Friday as stronger-than-expected U.S. data lifted the dollar and reduced bets on further Fed easing.
• Data released Thursday showed weekly U.S. jobless claims fell, while second-quarter economic growth exceeded estimates on strong consumer spending and business investment.
•Attention now turns to Friday’s PCE data, which may shed light on the Federal Reserve’s rate outlook.
• Friday’s U.S. personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, is projected to rise 0.3% month-on-month and 2.7% year-on-year for August, according to a Reuters poll.
• Immediate resistance is located at 0.5858(38.2%fib), any close above will push the pair towards 0.5895(SMA20).
• Support is seen at 0.5757(23.6%fib)and break below could take the pair towards 0.5730(Lower BB).
Recommendation: Good to sell around 0.5780 with stop loss of 0.5850 and target price of 0.5720
