FxWirePro: NZD/USD hits new 2-year low, downside bias remains

• The NZD/USD hit two year low on Thursday  as kiwi dollar was weighed down by hawkish easing from the U.S. Federal Reserve.

• The Fed lowered rates by 25 basis points as expected, but it said it will deliver fewer rate cuts until the end of 2025.

• The kiwi also received a double blow from data that pointed to the local economy contracting in Q3 as activity declined far more steeply than forecast.

• According to the data released today, New Zealand gross domestic product shrunk by 1.0% in the September quarter compared to the previous quarter, while analysts had expected a 0.2% decline.

•  Immediate resistance is located at 0.5707(38.2%fib), any close above will push the pair towards 0.5785(50%fib).

•  Support is seen at 0.5612(23.6%fib) and break below could take the pair towards 0.5577(Lower BB).

 Recommendation: Good to sell around 0.5650, with stop loss of 0.5700 and target price of 0.5570