NZD/USD: RBNZ’s dovish cut reinforces a downward bias for NZD – OCBC

New Zealand Dollar (NZD) bounced off its post-RBNZ lows, owing to a softer US Dollar (USD), but magnitude of strengthening was relatively weak. Pair last seen at 0.5855 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Bearish momentum on daily chart intact

"RBNZ’s dovish cut and lower OCR track reinforced a downward bias for NZD. Unless broader sentiment recovers in a big way, the Kiwi may well lag peers in the interim."

"Bearish momentum on daily chart intact but shows tentative signs of improvement while RSI is flat. Support at 0.5800/30 levels (200 DMA, 50% fibo retracement of April low to July high), 0.5730 (61.8% fibo). Resistance at 0.5880 (38.2% fibo)."