• NZD/USD remained defensive on Thursday as kiwi dollar was weighed down by downbeat economic outlook by New Zealand Treasury.
• New Zealand's Treasury said on Thursday it would likely cut its economic and fiscal forecasts because of a sustained productivity slowdown in the economy..
• The downbeat assessment increased odds of a 75 basis point rate cut by the Reserve Bank of New Zealand at next week's policy meeting.
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• At (GMT 05:57) Kiwi dollar was trading at up 0.04 % at $0.5873 against the U.S. dollar.
• The technical outlook remains bearish and points to eventual bigger drop, fourteen-day momentum is negitive.
• Immediate resistance is located at 0.5884(5SMA), any close above will push the pair towards 0.5935(38.2%fib).
• Support is seen at 0.5848(23.6%fib) and break below could take the pair towards 0.5831 (Lower BB).
Recommendation: Good to sell around 0.5870 with stop loss of 0.5950and target price of 0.5830
