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FxWirePro: NZD/USD slips lower on softer-than-expected NZ CPI

• NZD/USD slipped lower on Monday    after second-quarter inflation came in slightly below forecasts, reinforcing expectations that the Reserve Bank of New Zealand may begin easing monetary policy as early as August.

•Annual inflation rose to 2.7% in the second quarter ,   highest in a year and up from 2.5% in Q1 , but slightly below economists' expectations of 2.8%, Statistics New Zealand said on Monday.

• Quarter-on-quarter, the consumer price index (CPI) rose 0.5% in Q2, easing from a 0.9% increase in the previous quarter.

• Markets now assign a 75% probability to a 25 basis point rate cut by the RBNZ in August, up from 61% prior to the latest inflation data.

•  Immediate resistance is located at 0.6002(38.2%fib), any close above will push the pair towards 0.6109 (23.6%fib).

•  Support is seen at 0.5921(50%fib)and break below could take the pair towards 0.5883(Lower BB).

 Recommendation: Good to sell around 0.5960 with stop loss of 0.6050 and target price of 0.5880

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