• The New Zealand dollar eased slightly on Wednesday as investors digested mixed New Zealand's labor market data.
• New Zealand's employment grew modestly in the first quarter, with the jobless rate remaining near a 4.5-year high and wage inflation easing strengthening expectations of further interest rate cuts later this month.
• Statistics New Zealand data released Wednesday showed the unemployment rate held steady at 5.1% in Q1, while employment edged up 0.1% from the previous quarter.
•Wage growth slowed in the quarter, with the private sector labour cost index excluding overtime rising 0.4%, down from a 0.6% increase in the previous quarter and below the forecasted 0.5% gain.
• The easing in tight labour market conditions and softening in wage pressures is likely support the RBNZ’s easing bias and point another 25-basis-point cut in the cash rate when it meets at the end of the month.
• Immediate resistance is located at 0.6029(23.6%fib), any close above will push the pair towards 0.6091 (Higher BB).
• Support is seen at 0.5940 (38.2%fib) and break below could take the pair towards 0.5895(May 5th low).
Recommendation: Good to buy around 0.5990 with stop loss of 0.5900 and target price of 0.6060
