FxWirePro: NZD/USD eases as RBNZ holds rates, signals future easing

• NZD/USD eased on Wednesday after the Reserve Bank of New Zealand (RBNZ) held rates steady but signaled a likely cut ahead.

• The RBNZ held its interest rate at 3.25% on Wednesday, citing short-term inflation risks, but signaled possible rate cuts ahead if inflation continues to decline as expected..

• The central bank has lowered rates by 225 basis points since August, but with inflation at 2.5% and trade tensions posing potential upside risks, policymakers are now taking a more cautious stance.

• RBNZ meeting minutes showed the bank expects to cut rates in line with its May projections but sees a case for waiting until August due to short-term inflation risks.

•At GMT 04:39, the New Zealand dollar was trading down 0.01% at 0.5998 against greenback   .

•  Immediate resistance is located at 0.6069(Jul 7th high), any close above will push the pair towards 0.6111 (23.6%fib).

•  Support is seen at 0.5983(38.2%fib)and break below could take the pair towards 0.5912(Lower BB).

 Recommendation: Good to sell around 0.6020 with stop loss of 0.6090 and target price of 0.5940