• The NZD/USD traded in tight range on Thursday as trading activity remained thin due to holiday-thinned trade.
•Last Thursday's report, showed New Zealand’s GDP fell 1.0% in the September quarter compared to the previous quarter, much above market expectations of a 0.2% decline
• The unexpectedly dismal GDP report has caused investors to price in a 50 basis point rate cut by the RBNZ in February.
• Markets anticipate a 50 basis point rate drop from the Reserve Bank of New Zealand at its next meeting on February 19.
• Immediate resistance is located at 0.5671(Dec 20th high), any close above will push the pair towards 0.5743(38.2%fib).
• Support is seen at 0.5609(23.6%fib) and break below could take the pair towards 0.5578(Lower BB).
Recommendation: Good to sell around 0.5660, with stop loss of 0.5730 and target price of 0.5570
