FxWirePro: NZD/USD falls as stronger dollar weighs on kiwi

• NZD/USD extended decline on Tuesday  as expectations for a Federal Reserve rate hike strengthened  boosted the U.S. dollar

• Futures markets are currently pricing a 93.2% probability of a 25 bps Federal Reserve rate hike on Wednesday, supporting the dollar and putting pressure on risk-sensitive currencies such as the NZD

• On the data front,New Zealand electronic card retail sales declined 0.9% m/m in August, reversing the previous month’s 1.3% increase, while annual growth eased to 0.2%, pointing to subdued consumer spending

• RBNZ Assistant Governor Angus McGregor is scheduled to speak on Thursday, with markets likely to focus on his comments regarding inflation, economic activity and the future path of interest rates.

•  Immediate resistance is located at 0.5796(50%fib), any close above will push the pair towards 0.5816(Sep 14h high)

•  Support is seen at 0.5757(Lower BB) and break below could take the pair towards 0.5717 (38.2%fib).

 Recommendation: Good to sell  around 0.5770  with stop loss of 0.5850 and target price of 0.5700