• NZD/USD traded flat on Friday as investor focus shifted to U.S. inflation and US-China trade talks.
• High-level trade negotiations between the US and China are set to begin in Malaysia later on Friday to prevent a trade war escalation and keep next week's meeting between U.S. President Donald Trump and Chinese President Xi Jinping on track.
• Negotiations are centered on China’s dominance of global supplies of rare earth minerals and magnets, crucial for high-tech manufacturing, which Beijing has leveraged as a strategic tool against Washington.
• Friday’s US core consumer price index, a key gauge for Fed policy, is widely expected to remain steady at 3.1%.
•The U.S. Bureau of Labor Statistics announced last week that it would release the report despite the government shutdown, now in its 23rd day, to help the Social Security Administration calculate its annual cost-of-living adjustment.
• Immediate resistance is located at 0.5763(SMA 20), any close above will push the pair towards 0.5812(38.2).
• Support is seen at 0.5710(23.6%fib) and break below could take the pair towards 0.5688(Lower BB).
Recommendation: Good to sell around 0.5770 with stop loss of 0.5850 and target price of 0.5700
