• EUR/NZD advanced on Thursday as kiwi dollar was weighed down by strong expectations of another RBNZ rate cut.
• With another rate cut fully anticipated, markets are now awaiting the Reserve Bank of New Zealand’s policy meeting next week.
• After October’s surprise 50-bps cut, markets are betting on additional RBNZ easing, as weakening inflation expectations, deteriorating business confidence, and sluggish domestic demand continue to justify lower rates.
• Meanwhile,traders will keep an eye on New Zealand’s October trade data due Friday, including export and import totals as well as monthly and annual trade balance results
• Immediate resistance is located at 2.0654(23.6%fib), any close above will push the pair towards 2.0766(Higher BB).
• Immediate support is seen at 2.0467 (Nov 20th low) and break below could take the pair towards 2.0374(38.2%fib).
Recommendation: Good to buy on dips around 2.0580 with stop loss of 2.0460 and target price of 2.0700
