• NZD/USD edged higher on Monday as the greenback weakened ahead of U.S. Federal Reserve, where an interest rate cut is all but priced in but a divided committee makes for a wild card..
• U.S. consumer spending increased at a moderate pace in September after three consecutive months of strong gains, pointing to a loss of economic momentum toward the end of the third quarter, as a softer labour market and rising living costs weighed on consumer demand..
•Data followed private payroll data, which showed the sharpest decline in more than two-and-a-half years last month.
• Dovish remarks from several Federal Reserve officials have further bolstered expectations of monetary easing.
•CME's FedWatch tool shows markets pricing in roughly an 88% chance of a 25-basis-point rate cut at the Fed's meeting this week.
• Immediate resistance is located at 0.5796(50%fib), any close above will push the pair towards 0.5813(Higher BB).
• Support is seen at 0.5762(Dec 6th low) and break below could take the pair towards 0.5699(38.2%fib).
Recommendation: Good to buy around 0.5770, with stop loss of 0.5700 and target price of 0.5860
