FxWirePro: NZD/USD struggles at multi-month lows on rate outlook

• NZD/USD  remained pinned near a four-month low on Thursday as kiwi dollar extended its decline   as markets braced for more policy easing.

• The policy outlook shifted sharply after the RBNZ cut rates to 3.0% on Wednesday and signaled the need for additional stimulus.

• Markets and economists now anticipate at least two additional rate cuts to 2.5%, with the possibility of deeper easing if growth fails to rebound as the RBNZ expects.

•  Following the policy shift, the benchmark two-year swap rate slid 18 bps to 2.90%, setting the stage for a decline in fixed-rate mortgage costs.

•  At GMT 05:33 the New Zealand  dollar was down  0.02% to 0.5814against the Greenback

•  Immediate resistance is located at 0.5909(50%fib), any close above will push the pair towards 0.5926(SMA 20).

•  Support is seen at 0.5815 (61.8%fib)and break below could take the pair towards 0.5783(Lower BB).

 Recommendation: Good to sell around 0.5850 with stop loss of 0.5900 and target price of 0.5760