FxWirePro: NZD/USD maintains bearish bias with focus on 0.5800 level

• NZD/USD slipped lower on Tuesday as kiwi dollar remained under pressure from dovish expectations  from RBNZ .

•Official data released on last week showed New Zealand’s GDP contracted by 0.9% in the second quarter compared with the previous quarter, significantly missing analysts’ and the Reserve Bank of New Zealand’s forecast of a 0.3% decline.

• Investors are fully priced for a quarter-point cut to 2.75% in October, with a one-in-four chance of 50 basis points.

• Meanwhile, investors are closely monitoring New Zealand’s upcoming central bank leadership decision, as the appointment of the next governor could significantly influence monetary policy.

• The finance minister’s office said on Tuesday that an announcement regarding the Reserve Bank of New Zealand is expected at 1 p.m. local time (0100 GMT) on Wednesday.

•  Immediate resistance is located at 0.5896(38.2%fib), any close above will push the pair towards 0.5911(SMA 20).

•  Support is seen at 0.5819(Lower BB)and break below could take the pair towards 0.5805(61.8%fib).

 Recommendation: Good to sell around 0.5860 with stop loss of 0.5960 and target price of 0.5800