• NZD/USD steadied on Wednesday as soft U.S. inflation data and hawkish rate expectations by RBNZ supported kiwi dollar.
• U.S. dollar slumped as closely watched U.S. consumer inflation data for June surprised on the downside, with the headline measure falling 0.4% on a monthly basis and core inflation flat.
•Hawkish comments from RBNZ Chief Economist Paul Conway boosted expectations of further interest rate hikes.
• The Reserve Bank of New Zealand is widely expected to raise interest rates again in September, with rates reaching at least 3.0% by year-end, underpinning the kiwi.
• Meanwhile, data showed New Zealand's home prices fell 0.9% in June, failing to shake off a years-long funk with the economic recovery remaining fragile..
• Immediate resistance is located at 0.5830(50%fib), any close above will push the pair towards 0.5871 (June 15th high).
• Support is seen at 0.5742(38.2%fib)and break below could take the pair towards 0.5708(SMA 20).
Recommendation: Good to buy around 0.5800 with stop loss of 0.5730 and target price of 0.5880
