• NZD/USD firmed on Thursday as US dollar continued to struggle amid concerns over the U.S. economy and uncertainty surrounding a key Fed Board appointment.
• Focus is shifting to Trump’s upcoming Fed Board nomination and potential candidates to replace Chair Jerome Powell, whose term ends in May.
• Last week, President Trump dismissed the official behind labor data he criticized, drawing attention to his upcoming Fed Board nomination and potential picks for the next Fed Chair.
• U.S. initial jobless claims are in focus following last week’s disappointing nonfarm payrolls, which weighed on the dollar.
•The U.S. Labor Department is expected to report that initial jobless claims rose by 3,000 to 221,000 for the week ending August 2, while continued claims for the week ending July 26 are also projected to increase slightly.
• Immediate resistance is located at 0.5957(SMA 20), any close above will push the pair towards 0.5974(38.2%fib).
• Support is seen at 0.5884(50%fib)and break below could take the pair towards 0.5848(Lower BB).
Recommendation: Good to buy around 0.5940 with stop loss of 0.5900 and target price of 0.6000
