• NZD/USD firmed on Friday as US dollar weakened ahead of upcoming inflation data that could shape Federal Reserve policy expectations.
• January’s PPI is expected to show wholesale inflation easing to 0.3% month-on-month from 0.5% in December.
• Data released Thursday showed both initial and continuing jobless claims were below forecasts, signaling a stable U.S. labor market and continued worker retention by employers.
• Hawkish expectations for the Reserve Bank of New Zealand have faded after Governor Anna Breman said last week that the economy can keep expanding without reigniting inflation.
• Immediate resistance is located at 0.5993(38.2%fib), any close above will push the pair towards 0.6008(SMA 20).
• Support is seen at 0.5941 (Lower BB) and break below could take the pair towards 0.5920(50%fib).
Recommendation: Good to buy around 0.5980 with stop loss of 0.5900 and target price of 0.6100
