FxWirePro: NZD/USD slips ahead of RBNZ policy decision

• NZD/USD slipped lower on Tuesday as investors  positioned ahead to the Reserve Bank of New Zealand’s monetary policy decision

• The Reserve Bank of New Zealand is widely expected to leave its benchmark interest rate unchanged on Wednesday, though a narrow majority of economists now anticipate at least one rate hike by the end of September.

• The central bank will disclose individual votes by monetary policy committee members when consensus is not reached, in a move aimed at boosting transparency and improving public understanding of its decisions.

• The RBNZ is almost certain to lift its own projection for inflation and for the official cash rate which had been at 2.4% for December and just 2.8% by the end of 2027.

• The RBNZ is set to raise rates 50 basis points in total to 2.75% by end-Q4, poll medians showed, with a final rise to 3.00% ​by end-Q1 2027.

•  Immediate resistance is located at 0.5885(50%fib), any close above will push the pair towards 0.5896(SMA 20).

•  Support is seen at 0.5817(50%fib) and break below could take the pair towards 0.5786(Lower BB).

 Recommendation: Good to sell  around 0.5840 with stop loss of 0.5930 and target price of 0.5770