New Zealand Dollar: Downside risks grow against US Dollar – Societe Generale
Source Fxstreet
Societe Generale analysts note that NZD/USD is testing the lower boundary of its multi-month range at 0.5560/0.5550 following the RBNZ's decision to hold the OCR at 2.75%, despite expectations of a 25bp hike. While the central bank signalled that tighter policy is likely, a break below this crucial support zone could expose the pair to further losses towards 0.5480 and 0.5420, with any short-term rebound potentially capped at 0.5710.
Key support zone under pressure
"RBNZ OCR on hold at 2.75%, vote 4-3, consensus was +25bp."
"The committee agreed that tighter monetary policy is likely to be required, depending on the economic outlook."
"NZD/USD is challenging the lower boundary of its multi-month range at 0.5560/0.5550, a crucial support zone."
"A short-term rebound cannot be ruled out; however, the recent pivot high at 0.5710 could act as resistance."
"If the pair fails to defend the support at 0.5560/0.5550, the risk of a deeper downtrend would increase."
"In such a scenario, the next objectives could be located at the April 2025 low near 0.5480 and projections at 0.5420."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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