• NZD/USD dipped on Tuesday as greenback drew support from stronger-than-expected U.S. manufacturing data.
• US ISM Manufacturing PMI climbed to 55.6 in July, well above the 54.0 consensus and marking its highest reading in more than four years.
• The data reinforced the view that the U.S. economy remains resilient, lending support to the dollar.
• In New Zealand, the focus will be Wednesday's labour market report, with economists forecasting the unemployment rate to edge up to 5.4% in the June quarter alongside modest employment growth of 0.2%.
• The Reserve Bank of New Zealand has already indicated that further rate hikes are likely, with markets fully pricing in an additional 50 basis points of tightening by year-end.
• Immediate resistance is located at 0.5912(50%fib), any close above will push the pair towards 0.5933 (Higher BB).
• Support is seen at 0.5839 (61.8%fib) and break below could take the pair towards 0.5815(SMA 20).
Recommendation: Good to sell around 0.5870 with stop loss of 0.5950 and target price of 0.5800
