FxWirePro: NZD/USD gains on GDP beat,but downside trend holds

• NZD/USD edged higher on Thursday as kiwi dollar found some support after stronger-than-expected NZ Q2 GDP data.

• Official data showed New Zealand GDP rose 0.2% q/q in Q2, beating forecasts for 0.1% growth and the RBNZ’s zero-growth estimate, but slowing sharply from 0.8% growth in Q1.

•Annual GDP increased 2.6%, Statistics New Zealand data showed. The market had expected a 2.2% increase.

• The RBNZ meets on Oct 28, with markets pricing a 65% chance of a hike to 3.0%, though the move could be politically sensitive ahead of November’s general election..

• NZ CPI is due on Oct 22, with the RBNZ expecting inflation to ease to 3.9% from 4.1% in Q1, following an energy-driven increase.

•  Immediate resistance is located at 0.5769(Sep 16th high), any close above will push the pair towards 0.5809(38.2%fib)

•  Support is seen at 0.5708(38.2%fib) and break below could take the pair towards 0.5670(Lower BB).

 Recommendation: Good to sell  around 0.5740  with stop loss of 0.5800 and target price of 0.5670