FxWirePro: NZD/USD weakens as RBNZ quashes rate hike talk

• NZD/USD dipped on Monday after RBNZ Governor Anna Breman signaled that interest rate hikes are off the table for now, reinforcing expectations that monetary policy will remain accommodative

•Breman stated that economic developments are broadly consistent with RBNZ forecasts and that inflation is projected to reach the 2% target by mid-2026.

•RBNZ chief warned financial market conditions had tightened in recent weeks, leading investors to pare back rate hike expectations for next year.

• The RBNZ said Breman is scheduled to speak on the economy and monetary policy settings in interviews later on Monday and Tuesday.

•  New Zealand is expected to provide a mid-year budget update on Tuesday and will also release third-quarter GDP data on Thursday.

• Economists expect gross domestic product to have grown 0.8% in the third quarter, twice the pace projected by the RBNZ in its November statement. The GDP report is due on Dec. 18.

 •  Immediate resistance is located at 0.5851(50%fib), any close above will push the pair towards 0.5872(Higher BB).

•  Support is seen at 0.5745(61.8%fib) and break below could take the pair towards 0.5715 (SMA 20).

 Recommendation: Good to buy around 0.5750, with stop loss of 0.5690 and target price of 0.5830