FxWirePro:NZD/USD gaining momentum for a move towards 0.5950 level

• NZD/USD firmed on Friday as the U.S. dollar weakened, following a series of weaker-than-expected U.S. economic data that reinforced expectations of further Fed   rate cuts this year.

• The U.S. Producer Price Index (PPI) fell 0.5% in April, following an upwardly revised flat reading in March.

• U.S. factory production declined in April, falling 0.4% month-on-month as output dropped in both durable and non-durable goods. Meanwhile, retail sales rose just 0.1% month-on-month, slightly above expectations for no change.

• A weaker-than-expected retail sales report combined with a soft PPI has heightened expectations that the Federal Reserve will implement at least two rate cuts this year.

• At GMT 05:34, the New Zealand dollar was up 0.55% to 0.5912 against the   dollar.

•  Immediate resistance is located at 0.5926(38.2%fib), any close above will push the pair towards 0.6014 (23.6%fib).

•  Support is seen at 0.5854 (50%fib) and break below could take the pair towards 0.5781(61.8%fib).

 Recommendation: Good to buy around 0.5900 with stop loss of 0.5820 and target price of 0.5950