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NZD - worst performer of the day

NZD lost its shine after a surprise dovish rate cut.  It declined sharply to 0.60040 and is currently trading around 0.60054.

 

The Reserve Bank of New Zealand (RBNZ) cut rates by 25 bps to 5.25% from 5.50% today. The central bank’s new economic projection indicates a possibility of another rate cut this year and 100 bpbs in 2025.

 

Annual CPI inflation is projected at 2.4% by Sep 2025 vs 2.2% previous.

 

The near-term support is around 0.59970, any break below will drag the pair to 0.5970/0.5940.

 

On the higher side,  immediate resistance is 0.60230 any breach above targets 0.6350/0.60440.

 

It is good to sell on rallies around 0.60250  with SL around 0.6050 for a TP of 0.5945.

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