FxWirePro: NZD/USD inches higher as dollar softens on Fed rate cut bets

• NZD/USD inched up Thursday as dollar softened on rate cut hopes after Fed’s Williams hinted at possible easing.

• New York Fed President John Williams said Wednesday that while rates may be lowered eventually, policymakers will rely on incoming data to decide if a cut is warranted at the Sept. 16–17 meeting.

•Upcoming jobs and inflation data will play a crucial role in the Fed’s decision on whether to cut rates by a quarter point from the 4.25%–4.5% range it has maintained since December.

•Traders currently lay around 84% odds of a quarter-point rate cut next month, and have priced in a cumulative 56 basis points of easing by year-end.

• On the domestic front, data showed New Zealand business confidence improved in August as easing inflation boosted outlook, ANZ survey showed.

•  Immediate resistance is located at 0.5902(50%fib), any close above will push the pair towards 0.5940(Aug 11th high).

•  Support is seen at 0.5802 (61.8%fib)and break below could take the pair towards 0.5787(Lower BB).

 Recommendation: Good to sell around 0.5870 with stop loss of 0.5950 and target price of 0.5800