•NZD/USD remained under pressure on Thursday and is on track for a seventh consecutive daily decline, highlighting persistent bearish momentum despite expectations of tighter monetary policy in New Zealand.
•The kiwi's weakness is notable given that interest rate futures are currently pricing in a 75.4% probability of a Reserve Bank of New Zealand rate hike at its July 8 meeting.
•Market participants had hoped that falling oil prices, driven by expectations of increased global supply, would improve investor sentiment and support risk-sensitive currencies such as the New Zealand dollar. However, concerns about slowing global growth and weakening demand have limited any positive impact from lower energy costs.
•Unless a significant catalyst emerges to shift market sentiment, NZD/USD appears vulnerable to further losses. Technical indicators suggest a move toward key support at 0.5580 remains likely as sellers maintain control of the broader trend.
• Immediate resistance is located at 0.5667(June24 high), any close above will push the pair towards 0.5719(38.2%fib).
• Support is seen at 0.5637(23.6%fib)and break below could take the pair towards 0.5624(Lower BB).
Recommendation: Good to sell around 0.5650 with stop loss of 0.5740 and target price of 0.5600
