FxWirePro: NZD/USD drifts lower as USD demand strengthens

• NZD/USD dipped on Wednesday  as Fed rate expectations and  rising U.S. Treasury yields boosted the U.S. dollar broadly.

• Weakness in commodities including gold, silver, and copper, alongside softer equity markets, also undermined sentiment toward the Aussie.

• The Reserve Bank of New Zealand has remained cautious on further policy tightening, as the economy has only recently exited recession and still faces considerable spare capacity and subdued domestic demand.

• The Reserve Bank of New Zealand meets next Wednesday and markets imply a 30% chance of a hike in the 2.25% cash rate, though that rises to 90% for July..

•  Immediate resistance is located at 0.5878(SMA20), any close above will push the pair towards 0.5895(50%fib).

•  Support is seen at 0.5819(38.2%fib) and break below could take the pair towards 0.5789(Lower BB).

 Recommendation: Good to sell  around 0.5840 with stop loss of 0.5900 and target price of 0.5760