FxWirePro: NZD/USD weakens after RBNZ cuts benchmark rate

• NZD/USD initially gained on Wednesday but gave up ground as  investors digested RBNZ interest rate decision .

• New Zealand's central bank cut its benchmark interest rate on Wednesday, as expected, signaling a greater willingness to reduce borrowing costs further amid economic challenges from weak demand and trade barriers.

• The central bank lowered the benchmark rate by 25 basis points to 3.50%, boosting expectations for looser policy.

•  RBNZ is the first in the region to conduct a policy review following the U.S. imposition of broad import tariffs last week, which sent global markets into a spiral as policymakers contend with rising recession risks.

• At GMT 05:47, The New Zealand's dollar  was last  trading down 0.02% to $0.5531

•  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 sell around 0.5550 with stop loss of 0.5630 and target price of 0.5500