• NZD/USD rose higher on Wednesday as kiwi dollar was boosted by labour market data.
• New Zealand’s unemployment rate eased to 5.3% in Q1, but weak wage growth and labour market slack kept expectations for a rate hike by July unchanged..
• The central bank will closely watch wage inflation for signs of persistent price pressure, though Q1 data likely reflects only limited impact from the war.
• RBNZ held its official cash rate at 2.25% in April to assess the impact of Middle East tensions, but warned it would respond decisively if inflation rises..
• Market pricing shows a 35% chance of a rate hike later this month and has fully priced in a hike by the July meeting.
• Immediate resistance is located at 0.5951(Higher BB), any close above will push the pair towards 0.6002(38.2%fib).
•Support is seen at 0.5926(50%fib) and break below could take the pair towards 0.5884(SMA 20).
Recommendation: Good to by around 0.5920 with stop loss of 0.5830 and target price of 0.5980
