FxWirePro: NZD/USD sellers dominate amid RBNZ easing expectations

• NZD/USD  dipped on Friday as kiwi dollar remained under pressure as the RBNZ’s rate cut reinforced a dovish outlook, highlighting concerns over slowing growth and subdued inflation.

• RBNZ’s dovish rate cut Wednesday prompted markets to price in two more easings, taking rates to 2.5% from 2.75% earlier this week.

• Policymakers turned dovish despite inflation picking up, potentially touching 3.0% by year-end, the ceiling of the RBNZ’s target range.

•  Debt markets reacted sharply, with two-year swap rates tumbling to 2.87%, a low not seen since early 2020, as the RBNZ signals support for demand through lower mortgage costs.

•  At GMT 06:03 the New Zealand  dollar was down  0.31% to 0.5801against the Greenback

•  Immediate resistance is located at 0.5833(Aug 21st high), any close above will push the pair towards 0.5892 (50%fib).

•  Support is seen at 0.5795 (61.8%fib)and break below could take the pair towards 0.5725(April 11th low).

 Recommendation: Good to sell around 0.5830 with stop loss of 0.5900 and target price of 0.5760