FxWirePro: NZD/USD eases ahead of key labor market data

• NZD/USD eased towards  0.5890 level on Tuesday as traders turned cautious ahead of New Zealand’s upcoming labour market data .

• Markets are increasingly anticipating a rise in New Zealand’s unemployment rate to 5.3% in the upcoming labor market report.

• Deterioration in the labor market is expected to strengthen the case for the Reserve Bank of New Zealand (RBNZ) to ease monetary policy at its next meeting later this month.

• The Reserve Bank of New Zealand is now 85% priced for a 25 basis point cut on August 20, with maybe another move in the bag by early next year.

•At GMT 05:40, the New Zealand dollar was trading down 0.25% at 0.58938 against greenback.

•  Immediate resistance is located at 0.5930(Aug 4th high), any close above will push the pair towards 0.5964(SMA 20).

•  Support is seen at 0.5884(50%fib)and break below could take the pair towards 0.5847(Lower BB).

 Recommendation: Good to sell around 0.5930 with stop loss of 0.6000 and target price of 0.5850