FxWirePro: NZD/USD steadies around 0.5830,retains bid tone

NZD/USD steadied on Wednesday as soft U.S. inflation data and hawkish rate expectations by RBNZ supported kiwi dollar. U.S. dollar slumped as closely watched U.S. consumer inflation data for June surprised on the...

• NZD/USD steadied on Wednesday as soft U.S. inflation data and hawkish rate expectations by RBNZ supported kiwi dollar. • U.S. dollar slumped as closely watched U.S. consumer inflation data for June surprised on the downside, with the headline measure falling 0.4% on a monthly basis and core inflation flat. •Hawkish comments from RBNZ Chief Economist Paul Conway boosted expectations of further interest rate hikes.

• The Reserve Bank of New Zealand is widely expected to raise interest rates again in September, with rates reaching at least 3.0% by year-end, underpinning the kiwi. •

Meanwhile, data showed New Zealand's home prices fell 0.9% in June, failing to shake off a years-long funk with the economic recovery remaining fragile.. • Immediate resistance is located at 0.5830(50%fib), any close above will push the pair towards 0.5871 (June 15th high). • Support is seen at 0.5742(38.2%fib)and break below could take the pair towards 0.5708(SMA 20).

Recommendation: Good to buy around 0.5800 with stop loss of 0.5730 and target price of 0.5880