• The NZD/USD inched lower on Tuesday as kiwi dollar remained pressure from a stronger greenback and expectations of further monetary easing by the RBNZ.
• The surprise weakness in economic data has led investors to price in a 50 basis point rate cut by the RBNZ in February.
•Markets are pricing in a 50 basis point rate cut from the Reserve Bank of New Zealand at its next meeting on February 19.
• The current cash rate of 4.25% is expected to drop to 3.0% by the end of next year.
• Immediate resistance is located at 0.5672(Dec 20th high), any close above will push the pair towards 0.5710(50%fib).
• Support is seen at 0.5609(23.6%fib) and break below could take the pair towards 0.5553(Lower BB).
Recommendation: Good to sell around 0.5670, with stop loss of 0.5780 and target price of 0.5550
