FxWirePro: NZD/USD edges lower, remains on back foot

• NZD/USD  edged lower on Friday  as greenback remained bid as markets reassessed the outlook following the Fed decision.

• The U.S. dollar remained close to its highest level in seven weeks, supported by the Federal Reserve's rate increase and its signal of additional tightening ahead.

• New Zealand’s August trade deficit narrowed to NZ$1.35 billion from NZ$1.95 billion previously, while the annual trade deficit stood at NZ$5.44 billion.

• The Middle East conflict continues to escalate, with Saudi Arabia and the Houthis exchanging attacks, keeping risk sentiment fragile.

• Investors are also watching Trump’s planned meeting with Xi Jinping in Washington next week for signals on U.S.-China trade relations.

• The NZD/USD downtrend remains intact, with a break below 0.5700 potentially exposing the 0.5627 year-to-date low..

•  Immediate resistance is located at 0.5804(50%fib), any close above will push the pair towards 0.5825(SMA 20).

•  Support is seen at 0.5707 (38.2%fib) and break below could take the pair towards 0.5662(Lower BB).

 Recommendation: Good to sell around 0.5740  with stop loss of 0.5800 and target price of 0.5670