• The New Zealand dollar slid lower on Thursday, ending a six-day winning streak, as the U.S. dollar rebounded following strong retail sales data from the U.S.
• Overnight, data showed U.S. retail sales surged by the most in more than two years, rising by 1.4% in March, marking the largest monthly increase since January 2023.
• New Zealand data out Thursday showed consumer prices rose 0.9% in the first quarter, above forecasts of 0.7%, and nudging annual inflation up to 2.5%.
• The Reserve Bank of New Zealand is widely expected to lower its 3.5% cash rate by 25 basis points in May, with a further reduction to 2.75% anticipated by year-end.
• In the absence of concrete developments on U.S. trade policy, markets are maintaining a cautious tone, anticipating potential announcements that could shift economic dynamics.
• Immediate resistance is located at 0.5947(23.6%fib), any close above will push the pair towards 0.6000 (Psychological level).
• Support is seen at 0.5892 (April 16th low) and break below could take the pair towards 0.5860(38.2%fib).
Recommendation: Good to buy around 0.5880 with stop loss of 0.5800 and target price of 0.6000


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