• NZD/USD drifted on Thursday as kiwi dollar remained under pressure amid growing expectations that the Reserve Bank of New Zealand will cut cash rate its February meeting.
• Markets are confident the Reserve Bank of New Zealand will cut its 4.25% cash rate by 50 basis points on Feb. 19, with further easing expected toward 3.0% by year-end.
• In contrast, the U.S. Federal Reserve paused its easing cycle on Wednesday, with markets expecting just two more cuts this year, bringing rates to 3.85%.
• At (GMT 05:32) Kiwi dollar was trading at down 0.19% to 0.5647 against the U.S. dollar.
• Immediate resistance is located at 0.5704(50%fib), any close above will push the pair towards 0.5721(Higher BB).
•Support is seen at 0.5641 (38.2%fib) and break below could take the pair towards 0.5558(23.6%fib).
Recommendation: Good to sell around 0.5650 with stop loss of 0.5700 and target price of 0.5590
