• NZD/USD slipped lower on Wednesday s expectations of another RBNZ rate cut next week weighed on the kiwi.
• The Reserve Bank of New Zealand is widely expected to deliver a 25-basis-point rate cut at its policy meeting next week, which would lower the Official Cash Rate to 2.25%.
• Markets view this move as part of the central bank’s gradual shift toward easing, aimed at supporting economic momentum amid softer domestic demand and easing inflation pressures.
• In October, the RBNZ delivered an outsized 50-bp cut to 2.5%, pointing to weaker growth and confidence that inflation is under control.
• On the data front, New Zealand's producer prices rose in the third quarter, although at a slower pace.
• Immediate resistance is located at 0.5693(SMA 20), any close above will push the pair towards 0.5709(38.2%fib).
• Support is seen at 0.5615 (23.6%fib) and break below could take the pair towards 0.5591 (Lower BB).
Recommendation: Good to sell around 0.5650, with stop loss of 0.5700 and target price of 0.5580
