FxWirePro: NZD/USD downside pressure builds, key support level in focus

• NZD/USD slipped lower on Tuesday   as markets continued to react to a surprise downside in quarterly inflation.

• New Zealand’s annual inflation climbed to 2.7% in Q2 but came in just below the 2.8% forecast, Statistics New Zealand reported Monday.

• Markets are now pricing in an 80% chance that the Reserve Bank of New Zealand will cut its 3.25% cash rate by 25 basis points at the August 20 meeting.

• The RBNZ’s Chief Economist is scheduled to speak on Thursday about the economic impact of tariffs, a speech that could offer further clarity on the likelihood of a rate cut in August.

•  Immediate resistance is located at 0.6010(38.2%fib), any close above will push the pair towards 0.6043 (July 11th high).

•  Support is seen at 0.5941(50%fib)and break below could take the pair towards 0.5903(July 18th low).

 Recommendation: Good to sell around 0.5960 with stop loss of 0.6050 and target price of 0.5880