• NZD/USD fell sharply on Wednesday after the RBNZ cut rates as expected and signaled readiness for further easing if required.
• The Reserve Bank of New Zealand cut the official cash rate by 25 bps to a three-year low of 3.0%, marking a total easing of 250 bps across seven moves.
• The Reserve Bank of New Zealand said that the economy stalled in Q2 and lowered its projected cash rate floor to 2.55% from 2.85% in May, with two of six policymakers voting for a larger 50 bps cut.
• The quarter-point cut in the official cash rate was in line with the expectations of a large majority of economists.
• Meanwhile, Markets swiftly priced in higher chances of further easing, assigning a 50% probability to a rate cut in October and fully pricing in another move by November.
• Immediate resistance is located at 0.5897(Daily high), any close above will push the pair towards 0.5937 (38.2%fib).
• Support is seen at 0.5805 (50%fib)and break below could take the pair towards 0.5689(61.8%fib).
Recommendation: Good to sell around 0.5830 with stop loss of 0.5900 and target price of 0.5730
