• NZD/USD dollar rebounded on Wednesday after RBNZ lower interest rates for the third consecutive meeting, but it fell short of expectations from more dovish investors who had hoped for a larger cut.
• The Reserve Bank of New Zealand cut its cash rate by 50 basis points to 4.25%, bringing the total easing to 125 basis points over the past four months.
• Economists had widely expected a 50 basis point reduction, markets had factored in about a 40% likelihood that the RBNZ would opt for a larger 75 basis point cut.
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• At (GMT 10:23) Kiwi dollar was trading up at 0.97% at $0.5890 against the U.S. dollar.
• Immediate resistance is located at 0.5902(38.2%fib), any close above will push the pair towards 0.5902 (SMA 21).
• Support is seen at 0.5854(38.2%fib) and break below could take the pair towards 0.5798(23.6%fib B).
Recommendation: Good to buy around 0.5870, with stop loss of 0.5800 and target price of 0.5970
