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
