FxWirePro: NZD/USD weakens as manufacturing momentum slows to six-month Low

• NZD/USD dipped  on Friday   as kiwi dollar was   pressured by weak domestic manufacturing data and stronger greenback.

• New Zealand’s manufacturing sector saw only a slight expansion in April, with growth slowing to a six-month low as the Middle East conflict pushed up costs and disrupted supply chains, a survey showed on Friday..

• The Bank of New Zealand–Business NZ seasonally adjusted Performance of Manufacturing Index slipped to 50.5 in April, down from a revised 52.8 in March.

• The U.S. dollar strengthened broadly as inflation concerns persisted, reinforcing expectations of a more cautious Federal Reserve stance and boosting safe-haven demand amid geopolitical tensions.

• Looking ahead, attention will shift  to New Zealand Q1 producer price data on Tuesday, which will be closely watched ahead of the Reserve Bank of New Zealand’s May meeting for inflation signals.

•  Immediate resistance is located at 0.5905(SMA 20), any close above will push the pair towards 0.5960(38.2%fib).

•  Support is seen at 0.5875(50%fib) and break below could take the pair towards 0.5835(Lower BB).

 Recommendation: Good to sell  around 0.5900 with stop loss of 0.5950 and target price of 0.5840