• NZD/USD edged higher on Monday but gains were limited as market awaited Reserve Bank of New Zealand rate decision.
• The Reserve Bank of New Zealand is expected to cut its official cash rate (OCR) by 50 basis points to 3.75% on Wednesday.
• At November's policy meeting, the RBNZ emphasized that the economic slowdown caused by its policies was necessary to tackle persistent inflation. However, it indicated that moving forward, it would be appropriate to gradually ease restrictive monetary policy.
• RBNZ Governor Adrian Orr has signaled a 50 bps cut, and recent data has not changed that outlook.
• At GMT 10:43, The kiwi dollar was last trading up 0.20% to $0.5657. .
• Immediate resistance is located at 0.5750(Daily high), any close above will push the pair towards 0.5769(23.6%fib).
• Support is seen at 0.5715(38.2%fib) and break below could take the pair towards 0.5672(50%fib).
Recommendation: Good to buy around 0.5720 with stop loss of 0.5650 and target price of 0.5780
