• NZD/USD edged lower on Friday as the kiwi weakened after a soft consumer confidence reading dampened sentiment.
• Consumer confidence in New Zealand declined in May, according to ANZ-Roy Morgan data released Friday, as persistently high inflation expectations continued to deter spending.
• The consumer confidence index fell to 92.9 in May from 98.3 in April. A reading above 100 shows optimism, while below that indicates pessimism..
• Consumer inflation expectations eased by 0.1%, but remained elevated at 4.6%..
• The market is now awaiting U.S core Personal Consumption Expenditures figures for clues on the rate cut outlook.
• At GMT 12:12, the New Zealand dollar was down 0.06% to 0.5958 against the dollar.
• Immediate resistance is located at 0.6017(23.6%fib), any close above will push the pair towards 0.6036(Higher BB).
• Support is seen at 0.5924(38.2%fib) and break below could take the pair towards 0.5892(May 23rd low).
Recommendation: Good to buy around 0.5940 with stop loss of 0.5860 and target price of 0.6080
