FxWirePro:NZD/USD drifts lower, could be on verge of bigger drop

• NZD/USD   eased on Thursday as dollar firmed as data showed U.S. inflation picked up as expected while oil prices resumed their climb as the U.S.-Israeli war on Iran dragged on.

•Nervous investors sought the liquidity of dollars while shunning currencies from countries that are net energy importers.

• Data from the Labor Department showed the consumer price index rose 0.3% in February, in line with forecasts and above January's 0.2% increase.

• The CPI rose 2.4% in the year to February while the core rate, which excludes food and energy prices, rose 2.5%, bothin line with forecasts..

•New Zealand   heavy reliance on imported energy makes its economy vulnerable to global oil price shocks

• On monetary policy, the RBNZ left its cash rate unchanged last month, highlighting the importance of keeping policy accommodative.

•  Immediate resistance is located at 0.5919(50%fib), any close above will push the pair towards 0.5966(SMA 20).

•Support is seen at 0.5889(61.8%fib) and break below could take the pair towards 0.5818(Lower BB).

 Recommendation: Good to sell around 0.5900 with stop loss of 0.5960  and target price of 0.5860