• NZD/USD ticked up on Friday as the U.S. dollar softened ahead of August payrolls data.
• U.S. payrolls data is expected to show 78,000 jobs added in August, up from 73,000 the prior month
• Markets will watch the data closely, as it may guide the Fed’s next move, with expectations firm for a rate cut later this month.
• NZD/USD has been on the defensive since the Reserve Bank of New Zealand cut rates to 3.0% last month and flagged further easing was needed to actively stimulate a sluggish economy.
• The RBNZ is projected to deliver two more cuts, driving the cash rate to 2.50%, its softest level since mid-2022.
• Immediate resistance is located at 0.5888(SMA 20), any close above will push the pair towards 0.5907(38.2%fib).
• Support is seen at 0.5813(61.8%fib)and break below could take the pair towards 0.5787(Lower BB).
Recommendation: Good to sell around 0.5870 with stop loss of 0.6630 and target price of 0.5820
