GDT price index came in at -2.8% vs -7.4% prior, down for the 4th consecutive time, furthering downside in NZD/USD.
- RBNZ's quarterly inflation expectations survey showed the outlook for inflation on a 2-year horizon slowed sharply to 1.63% from 1.85%, the lowest level since 1994.
- On the technical side, the pair has broken strong trendline support at 0.6585 in Tuesday's trade.
- Momentum indicators are biased lower, Stochs has crossover from overbought levels and RSI points south.
- Histogram on the MACD has slipped below zero and the MACD line is on the verge of a bearish crossover below signal line.
- 0.6548 (50% fib of 0.6347 to 0.6750 rise) is initial support on the downside ahead of 0.6506 (Feb 3rd lows).
- Immediate resistance is seen at 0.66 (38.2% fib of 0.6347 to 0.6750 rise) and then at 0.6659 (Feb 8th highs).
Recommendation: Good to sell rallies around 0.6580, SL: 0.6660, TP: 0.65/0.6450
