FxWirePro: NZD/USD languishes near one-week low, outlook strongly bearish

• NZD/USD fell to one -week low on Friday as slightly stronger US dollar and downbeat China's manufacturing PMI data weighed on kiwi dollar.

• The Federal Reserve’s hawkish tilt continues to lend strong support to the U.S. dollar, as investors recalibrate expectations for the timing and scale of future rate cuts.

• On the data front, Factory output in China fell for the seventh month in a row in October, official data showed on Friday, keeping pressure on Beijing to introduce more stimulus measures as domestic demand falters and exporters rely on discount-driven sales abroad.

• New Zealand’s reliance on Chinese demand for its exports means the NZ dollar tends to mirror movements to China data.

•  Immediate resistance is located at 0.5820(38.2%fib), any close above will push the pair towards 0.5868(50%fib).

•  Support is seen at 0.5759(23.6%fib)and break below could take the pair towards 0.5743(Lower BB).

 Recommendation: Good to sell around 0.5800 with stop loss of 0.5850 and target price of 0.5730