• NZD/USD edged lower on Monday as markets positioned for a rate cut from the Reserve Bank of New Zealand at Wednesday’s November meeting.
• Weakness in New Zealand’s recent economic data is increasing the likelihood that the RBNZ may need to loosen policy.
• Markets are all but certain the Reserve Bank of New Zealand will cut rates by 25 basis points on Wednesday, but are on the fence about whether a further reduction will follow next year.
•Traders will pay close attention to the central bank’s guidance after the decision, with analysts noting this may be the final cut of the current easing cycle unless global conditions deteriorate sharply.
• Immediate resistance is located at 0.5635(Nov 20th high), any close above will push the pair towards 0.5669(38.2%fib).
• Support is seen at 0.5575(23.6%fib) and break below could take the pair towards 0.5532 (Lower BB).
Recommendation: Good to sell around 0.5630, with stop loss of 0.5770 and target price of 0.5550
