FxWirePro: NZD/USD downside pressure builds, key support level in focus

NZD/USD edges lower on Monday  as stronger greenback and bets for another interest rate cut by the  RBNZ at the November 26 meeting weighed on kiwi dollar.

• Markets are increasingly pricing in another rate cut from the RBNZ on November 26, reflecting expectations that policymakers will continue easing.

• On the data front, Food prices in New Zealand fell in October, boosting expectations of a quarter-point RBNZ rate cut later this month. Meanwhile, home prices rose 0.7% on the month, suggesting the property market may be stabilising

• The greenback firmed on Monday as investors braced for a wave of U.S. data following the end of the government shutdown, seeking clarity on the Fed’s December rate outlook.

• This week’s focus is on key U.S. data releases, including Thursday’s closely watched September nonfarm payrolls report.
 
•  Immediate resistance is located at 0.5691(38.2%fib), any close above will push the pair towards 0.5700 (SMA 20).

•  Support is seen at 0.5611(23.6%fib) and break below could take the pair towards 0.5600 (Psychological level).

 Recommendation: Good to sell around 0.5680, with stop loss of 0.5750 and target price of 0.5620