FxWirePro: NZD/USD recovers from two-month low ahead of RBNZ rate decision

• NZD/USD recovered from a two-month low on Tuesday, driven by hopes that the U.S. might be open to negotiating its aggressive tariffs.

•The ongoing trade tensions between the United States and other countries have led to a significant number of nations seeking to engage with the White House for trade talks.

• Attention is now firmly focused on the Reserve Bank of New Zealand’s (RBNZ) policy meeting scheduled for Wednesday, where markets are bracing for a significant decision regarding interest rates.

•The Reserve Bank of New Zealand (RBNZ) is expected to cut the official cash rate (OCR) by 25 basis points, from 3.75% to 3.50%, at its policy meeting on Wednesday.  

•This expected move comes amid growing concerns over the country’s economic performance, particularly in light of global trade uncertainties and domestic challenges

•  Immediate resistance is located at 0.5637(50%fib), any close above will push the pair towards 0.5687(61.8%fib).

•  Support is seen at 0.5585 (38.2%fib) and break below could take the pair towards 0.5518(23.6%fib).

 Recommendation: Good to buy around 0.5600 with stop loss of 0.5480 and target price of 0.5580