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

• NZD/USD drifted  lower as   On Tuesday a investors focused on upcoming inflation data for clues on the U.S. interest-rate outlook.

• Markets await Wednesday’s U.S. July core CPI, forecast at 2.5% YoY, followed by Thursday’s PPI, expected at 4.9% YoY, for fresh clues on the Fed’s policy outlook.

• On geopolitical front,U.S.-Iran negotiations remain uncertain, with both sides seeking reparations, raising the risk of delays in peace talks.

• The RBNZ’s Q3 expectations survey on Thursday will be closely monitored for signals on inflation and the central bank’s policy path.

• Futures markets currently price an 86.5% probability of a 25-bps RBNZ rate hike on September 2.

•  Immediate resistance is located at 05917(61.8%fib), any close above will push the pair towards 0.5949(Higher BB).

•  Support is seen at 0.5844(SMA 20)and break below could take the pair towards 0.5814(38.2%fib).

 Recommendation: Good to sell around 0.5900  with stop loss of 0.5950 and target price of 0.5830