FxWirePro:NZD/USD neutral in the near-term, scope for downward resumption - EconoTimes


FxWirePro:NZD/USD neutral in the near-term, scope for downward resumption - EconoTimes

* NZD/USD trimmed sharp weekly losses on Friday as investors digested Federal Reserve Chair Jerome Powell comments and mixed Chinese economic data.

*Data on Friday showed ,China's retail sales handily outpaced forecasts, but industrial output and property activity disappointed hopes that stimulus measures were finally working.

*Overnight, U.S. Federal Reserve Chair Jerome Powell said the central bank was not in a hurry to cut interest rates, indicating borrowing costs may remain higher for longer

* The Reserve Bank of New Zealand is still expected to cut rates by 50 basis points to 4.25% at its next meeting on Nov. 27, though markets now anticipate the rate-cutting cycle to end around 3.5% instead of 3.0%.

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* At (GMT 06:38) Kiwi dollar was trading at up 0.19 % at $0.5860 against the U.S. dollar.

* The technical outlook remains bearish and points to eventual bigger drop, fourteen-day momentum is negitive.

* Immediate resistance is located at 0.5889(Nov 14th high), any close above will push the pair towards 0.5929(38.2%fib).

* Support is seen at 0.5841(23.6%fib) and break below could take the pair towards 0.5813(Lower BB).

Recommendation: Good to sell around 0.5870 with stop loss of 0.5950and target price of 0.5830

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