• NZD/USD edged higher on Wednesday as dollar was defensive following soft U.S. inflation data reinforced expectations for a September rate cut..
• U.S. Labor Department data showed the consumer price index rose 2.7% in the 12 months through July, slightly below the 2.8% rate that economists had forecast.
• The inflation report drew heightened attention from investors, following the August 1 jobs miss that had already stirred stagflation worries..
• Traders now see a 94% probability of a Fed rate cut in September, up from 86% a day earlier and 57% a month ago, CME FedWatch data showed.
• At GMT 06:02, the kiwi dollar was down 0.10% to 0.6501 against the greenback
• Immediate resistance is located at 0.6009(38.2%fib), any close above will push the pair towards 0.6062 (Higher BB).
• Support is seen at 0.5915 (50%fib)and break below could take the pair towards 0.5869(Lower BB).
Recommendation: Good to sell around 0.5940 with stop loss of 0.6000 and target price of 0.5860
