• NZD/USD dipped on Thursday as stronger greenback offset better-than-expected New Zealand GDP data .
• The New Zealand economy expanded in the third quarter, backing early indications of a pickup in activity after a long soft patch and making a cash-rate cut by the central bank even less likely.
•Official data released on Thursday showed GDP rose 1.1% quarter-on-quarter in the third quarter, beating analysts’ 0.9% forecast and the Reserve Bank of New Zealand’s 0.4% projection.
•New Zealand’s economy has been under pressure since falling into recession last year, shrinking in three of the past six quarters as confidence weakened and unemployment rose.
•The RBNZ expects to keep the cash rate steady at 2.25% over the coming year, with policymakers seeing signs of economic recovery while remaining cautious about a potential return of inflation.
• Meanwhile, greenback held gains against its major counterparts on Thursday as markets positioned ahead of key U.S. inflation data later in the week..
• Immediate resistance is located at 0.5793(38.2%fib), any close above will push the pair towards 0.5846(23.6%fib).
• Support is seen at 0.5752 (50%fib) and break below could take the pair towards 0.5740(SMA 20).
Recommendation: Good to sell around 0.5770, with stop loss of 0.5850 and target price of 0.5710
