FxWirePro: NZD/USD softens despite firm expectations for RBNZ tightening

• NZD/USD eased on Thursday  as  disappointing domestic labour market data weighed on kiwi dllar.

• New Zealand's labour market showed further signs of weakening after the Q2 Household Labour Force Survey revealed the unemployment rate climbed to 5.6%, its highest level in more than a decade..

• The data reinforced concerns that elevated borrowing costs are weighing on hiring, although persistent inflation continues to complicate the RBNZ's policy outlook..

• Despite the deterioration in employment conditions, interest-rate markets continue to price in an 86.8% probability of a 25-basis-point RBNZ rate hike at its September meeting.

• Investors believe policymakers are likely to prioritise containing inflation pressures, even as the economy shows clearer signs of slowing.

•Market attention is now firmly focused on Friday's U.S. July non-farm payrolls report, where economists expect an increase of around 80,000 jobs.
 
•  Immediate resistance is located at 0.5912(50%fib), any close above will push the pair towards 0.5941 (Higher BB).

•  Support is seen at 0.5861(50%fib) and break below could take the pair towards 0.5828(SMA 20).

 Recommendation: Good to sell around 0.5890 with stop loss of 0.5950 and target price of 0.5800