FxWirePro: NZD/USD runs out of steam but maintains bullish outlook

• 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