FxWirePro: NZD/USD rallies as US jobs concern continues to build

• NZD/USD rose higher on Tuesday  as US  dollar continued to weaken as last week’s U.S. jobs data and interest rate expectations remained the dominant drivers in currency markets.

• U.S. job growth slowed sharply in August, while the unemployment rate climbed to a near four-year high of 4.3%, underscoring a weakening US labor market and reinforcing expectations of a Fed rate cut next week.

• With traders increasingly warming to the prospect of a larger 50 basis-point rate cut at the Federal Reserve’s meeting next week, attention now turns to upcoming U.S. inflation release .

• Producer price data for August is due Wednesday, followed by Thursday’s core CPI, where economists expect a 0.3% monthly increase and a 3.1% annual gain.

• Meanwhile, domestic drivers will come into focus on Friday with the release of New Zealand’s August manufacturing PMI and electronic card retail data.

•  Immediate resistance is located at 0.5973(Higher BB), any close above will push the pair towards 0.6011(38.2%fib).

•  Support is seen at 0.5920(50%fib)and break below could take the pair towards 0.5887(SMA20).

 Recommendation: Good to buy around 0.5940 with stop loss of 0.5850 and target price of 0.6050