• NZD/USD gains some ground on Tuesday after RBNZ top central banker warned of higher inflation from oil prices
• RBNZ Governor Anna Breman said on Tuesday that if higher oil prices persisted, inflation could exceed earlier forecasts, adding that the economic recovery was expected to gain momentum and broaden..
•RBNZ Governor Anna Breman said in speech notes from Dunedin that the economic recovery was expected to gain strength and become more broad-based, helped by exports and a gradual pickup in household spending.
• The central bank raised its main cash rate by 25 basis points to 2.75% at its September policy meeting, but signaled a more gradual pace of further tightening than many market participants had expected.
• The RBNZ meets on October 28 and markets imply a 75% chance that it will raise rates again to 3%.
• Immediate resistance is located at 0.5772(50%fib), any close above will push the pair towards 0.5836(SMA20)
• Support is seen at 0.5697(38.2%fib) and break below could take the pair towards 0.5673(Lower BB).
Recommendation: Good to sell around 0.5770 with stop loss of 0.5850 and target price of 0.5700
