• NZD/USD eased slightly on Wednesday as traders cautiously awaited Wednesday's consumer price index report.
• The U.S. headline consumer price index (CPI) is expected to have increased by 0.3% month-on-month in December, with the core CPI rising by 0.2%, according analyst expectation. Year-on-year, headline CPI is likely up 3.
• The data follows a strong jobs report, which led traders to scale back their expectations of future rate cuts by the Federal Reserve.
• At (GMT 05:30) Kiwi dollar was trading at down 0.02% to 0.5603 against the U.S. dollar.
• Immediate resistance is located at 0.5632(50%fib), any close above will push the pair towards 0.5675(61.8%fib).
•Support is seen at 0.5588 (38.2%fib) and break below could take the pair towards 0.5537(23.6%fib).
Recommendation: Good to sell around 0.5620 with stop loss of 0.5700 and target price of 0.5530
