NZD – The New Zealand dollar is testing key support, implying further downside pressure

Investors still expect the Reserve Bank of New Zealand to cut its benchmark interest rate by 25 basis points from 2.50% in November, but have largely abandoned the idea of ​​a 50 basis point cut.

The NZD/USD pair, as seen on the technical charts, shows the RSI and Stochastic Oscillator trending lower, suggesting continued downward pressure on the NZD. Support levels are estimated at 0.5680/0.5700, with the next key levels at 0.55 and 0.54. On the upside, some resistance is expected at the 0.58 level, with Wednesday's high at 0.5801; stronger resistance is anticipated at the 0.60 level and 0.6060.

Forecast range:

Resistance: 0.5800* - 0.6000* – 0.6060

Support: 0.5680/0.5700* - 0.5500 – 0.5400

Key Focus:
Wednesday: New Zealand Q3 Unemployment Report (05:45)

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