• NZD/USD dipped on Tuesday as kiwi dollar weakened on expectations of further rate cut Reserve Bank of New Zealand.
• The RBNZ lowered its policy rate by 25 basis points to 3.00% last week, the lowest level in three years, and signaled the likelihood of further cuts in the months ahead. Policymakers cited mounting domestic challenges and global headwinds.
• The Reserve Bank of New Zealand has lowered interest rates by a total of 250 basis points since August 2024 in an effort to support a fragile economic recovery.
• New Zealand’s annual inflation stood at 2.7%, comfortably within the Reserve Bank of New Zealand’s 1%–3% target band, giving policymakers greater flexibility to continue cutting rates to support growth without risking price stability.
• Immediate resistance is located at 0.5909(38.2%fib), any close above will push the pair towards 0.5941(Aug 19th high).
• Support is seen at 0.5805 (61.8%fib)and break below could take the pair towards 0.5776(Lower BB).
Recommendation: Good to sell around 0.5850 with stop loss of 0.5900 and target price of 0.5760
