• NZD/USD edged lower on Wednesday as U.S. dollar firmed as expectations grew for the imminent reopening of the U.S. government, which is set to release a backlog of pending economic data..
• The end of the shutdown may be in sight, with the House of Representatives returning to Washington on Tuesday for a key vote aimed at reopening the government.
• The House of Representatives, under Republican control, is set to hold a Wednesday afternoon vote on a bipartisan compromise to resume government funding and conclude the shutdown that began on October 1.
•Overnight, payroll processor ADP reported that U.S. firms were cutting more than 11,000 jobs per week through late October, highlighting the growing fragility in the labor market.
• Traders are now pricing in close to a 68% chance that the Fed would ease rates by 25 basis points next month, up from around 62% a day ago, according to the CME FedWatch tool.
• Traders see roughly a 60% probability of a Fed rate cut in December, but incoming data could quickly alter those odds.
• Immediate resistance is located at 0.5687(38.2%fib), any close above will push the pair towards 0.5709(SMA 20).
• Support is seen at 0.5609(23.6%fib) and break below could take the pair towards 0.5590 (Lower BB).
Recommendation: Good to sell around 0.5660, with stop loss of 0.5720 and target price of 0.5580
