FxWirePro: NZD/USD ticks up after New Zealand Q3 inflation hits top Of RBNZ band

• NZD/USD    inched up against the U.S. dollar on Monday   after release of New Zealand’s CPI inflation data.

• New Zealand’s annual inflation rose to 3.0% in Q3, matching analysts’ forecasts and hitting the upper end of the central bank’s target range, official data showed Monday.

• The CPI climbed 1.0% in the third quarter, accelerating from a 0.5% increase in Q2, according to Statistics New Zealand, signaling a pickup in domestic inflationary pressures.

• Swaps suggest a 25-basis point November rate cut by the RBNZ has been fully factored in, but markets acknowledge a slight risk of another surprise 50-bp move, as seen in the previous policy decision.

•The RBNZ cut its cash rate by 50 bps to 2.5% in its latest policy decision, even though it had projected Q3 inflation at 3% in August, pointing to concerns over the economy’s weakness.

•  Immediate resistance is located at 0.5746(38.2%fib), any close above will push the pair towards 0.5776(SMA 20).

•  Support is seen at 0.05686(38.2%fib) and break below could take the pair towards 0.5664(Lower BB).

 Recommendation: Good to sell around 0.5750 with stop loss of 0.5800 and target price of 0.5690