• NZD/USD inched up on Thursday as easing tensions between the U.S. and China and weaker US dollar supported kiwi dollar.
• U.S. consumer prices rose less than expected in May, with lower gasoline prices offsetting rent gains. However, inflation may pick up in the coming months due to import tariffs imposed by the Trump administration.
• The softer inflation data prompted President Trump to renew calls for a significant Fed rate cut. He has long advocated for lower rates, though Fed officials have largely dismissed his pressure.
• Traders are pricing in a 70% chance of a quarter-point reduction in the Fed policy rate by September. Policymakers are widely expected to keep rates unchanged next week.
•. Producer Price Index (PPI) due later today will be closely watched as the next key gauge of U.S. inflation pressures and potential Fed policy direction
• Immediate resistance is located at 0.6076(38.2%fib), any close above will push the pair towards 0.6099 (Higher BB).
• Support is seen at 0.6005 (50%fib) and break below could take the pair towards 0.5930(61.8%fib).
Recommendation: Good to buy around 0.6000 with stop loss of 0.5930 and target price of 0.6100
