• 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
