• NZD/USD advanced on Wednesday after RBNZ lifted interest rates for the first time since mid-2023.
• The Reserve Bank of New Zealand raised its official cash rate 25 basis points to 2.50%, citing that while further increases "appear likely at upcoming meetings, their timing is highly uncertain..
• Policymakers acknowledged that inflation remains persistently elevated and warned that additional rate increases could become necessary if price pressures prove more entrenched than anticipated..
• The central bank also highlighted signs that the domestic economy could be recovering more quickly than expected, suggesting stronger economic activity may warrant a more restrictive monetary policy stance in the months ahead..
• The central bank said the path of interest rates will be determined by incoming economic data, particularly inflation, labour market conditions and domestic demand.
• Immediate resistance is located at 0.5723(38.2%fib), any close above will push the pair towards 0.5796(50%fib).
• Support is seen at 0.5672(Daily low)and break below could take the pair towards 0.5627(23.6%fib).
Recommendation: Good to sell around 0.5730 with stop loss of 0.5780 and target price of 0.5650
